White House Economic Advisor Hassett says inflation is very much declining at the core level and that falling inflation should help the Fed normalise rates, can imagine rate cuts alongside reducing balance sheet

Hassett's remarks indicate a hawkish shift regarding the Fed's stance on inflation and monetary policy, suggesting that declining core inflation may pave the way for rate normalization and potential cuts. This could influence market expectations around the Fed’s interest rate path and create volatility in the USD, especially as further discussions on Fed appointments unfold.