Economist Kevin Hassett stated in an interview that Trump's plans for tax cuts and deregulation are supply-side policies that will lead to 'supply-side growth,' and 'when you increase supply, you exert downward pressure on inflation.'
Hassett countered the view that rising US Treasury yields and gold prices are due to investor expectations that Trump's presidency will lead to inflation, stating: 'In fact, it is higher real interest rates that are driving the current trend, as real interest rates rise when people expect the Federal Reserve's policy rate to remain near current levels, because the economy is very strong.'