Hassett BLASTS the Fed as BEHIND the curve

• Producer Price Index (PPI) for December came in hotter than expected (+3.0% actual vs +2.7% expected year-over-year).
• Kevin Warsh, Trump's pick for Fed Chair, has been critical of the Fed's track record on economic forecasting and inflation.
• Kevin Hassett believes AI is creating a 'massive supply shock' that increases productivity and GDP, making the economy less inflationary and allowing the Fed to cut interest rates significantly (potentially to 1%).

The discussion centers on President Trump's pick for Federal Reserve Chair, Kevin Warsh, and the current state of the U.S. economy. Kevin Hassett, National Economic Council Director, expresses support for Warsh and criticizes the Fed's past performance on inflation. He highlights AI-driven productivity as a deflationary force that should allow for significant interest rate cuts, potentially boosting economic growth.