A large interest rate cut seems reasonable, but Hassett believes that the Federal Reserve is not as independent as it should be.
Trump's potential pick for Federal Reserve chairman defended the Fed's aggressive interest rate cut last month, despite Trump's accusations that the central bank's move was politically motivated.
Kevin Hassett, an economic adviser to the Trump administration, said in an interview that the Fed's move to cut its key interest rate by 50 basis points instead of 25 basis points was justified because data showed a weakening job market.
“It made sense to start cutting rates aggressively based on the data they had at the time, when it did look like economic growth was slowing sharply,” Hassett said in an interview.

An increase in U.S. retail sales in September showed the economy remains on track, which may not prevent the Federal Reserve from cutting interest rates next month, but the magnitude of the cut is set to be smaller.
On Thursday, U.S. retail sales rose slightly more than expected in September, supporting the view that economic growth remained strong in the third quarter.
The monthly rate of retail sales in the United States in September was 0.4%, exceeding the expected 0.3% and the previous value of 0.1%. The number of initial jobless claims in the United States for the week ending October 12 was 241,000, lower than the expected 260,000, and the previous value was revised up from 258,000 to 260,000.
After the release of retail sales and initial claims data, traders expect the Federal Reserve to reduce interest rate cuts this year. The US dollar index rose more than 20 points in the short term. Spot gold fell $5 in the short term.

高盛在最新报告中预测：美联储将继续在11月降息25个基点，且接下来的每次会议都会降息，直到明年6月。
高盛周三表示，预计美联储将在2024年11月至2025年6月期间连续降息25个基点，最终将利率区间降至3.25%-3.5%。
上个月，美联储将联邦基金利率下调了50个基点，理由是他们更有信心通胀率将继续回落至2%的年度目标。美国联邦基金利率目前为4.75%-5.00%，该利率指导银行间借贷的利率，并影响消费者贷款利率。
若高盛的预测成真，这意味着美联储在今年11月、12月、明年1月、3月、5月和6月的议息会议上都将降息25个基点。
荷兰国际集团（ING）首席国际经济学家James Knightley也表示，美联储可能在今年剩余时间降息50个基点。
Knightley解释说，美联储目前的做法侧重于风险管理。与大多数央行的单一目标是将通胀率降至2%不同，美联储有两个主要目标：价格稳定和充分就业。如果美联储有信心实现通胀目标，它可能会将重点转向支持就业。
美联储的目标是实现“软着陆”，即经济放缓足以降低通胀，但避免经济衰退。Knightley表示，美联储可能很快就会从导致经济活动放缓的限制性政策转向更为中性的立场。这将为经济提供更多增长空间，同时仍能控制通胀。
Knightley表示，美联储11月降息25个基点，随后12月再降息一次是非常适合的。他还预测美联储可能会在2025年夏季将利率降至3%-3.5%左右。
自美联储上个月大幅降息以来，债券市场一直剧烈波动。基准的10年期美债收益率在强劲的通胀数据公布后大幅上升，而在数据显示就业市场放缓后又回落。这些波动表明，投资者对其美联储利率预测越来越不确定。
芝加哥商品交易所（CME）的“美联储观察”工具显示，市场目前预计美联储在下次会议上降息25个基点的可能性为94.1%，而维持利率不变的可能性仅为5.9%，并不再预计美联储将降息50个基点，因为市场已经看到了一系列最新的数据发布，以及企业盈利预测，这些都表明美国经济将继续在来年初继续扩张。
亚特兰大联储的GDPNow预测工具将第三季度经济增长率定为3.2%，明显高于2%到2.5%的长期趋势。
高盛还表示，预计欧洲央行将在周四的货币政策会议上降息25个基点，并预计在2025年6月政策利率降至2%之前，欧洲央行会连续进行25个基点的降息。
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