ECONOMIC SHOWDOWN: White House says Fed has room to act

• January saw a strong jobs report with 130,000 jobs added.
• Labor force participation reached its highest level since 2001, indicating people are re-entering the workforce due to high wages and factory starts.
• Reduced federal government employment (lowest since 1966) contributes to fiscal responsibility and helps lower interest rates.
• Hassett believes a 'positive supply shock' from AI will lead to high growth and low inflation, providing ample room for the Fed to cut rates.
• President Trump's aspiration for 15% growth is noted, with Hassett suggesting 4-5% growth is achievable due to AI-driven productivity.

White House National Economic Council Director Kevin Hassett discusses a strong January jobs report, record labor force participation, and the positive impact of reduced government employment on fiscal responsibility. He advocates for Federal Reserve rate cuts, citing a 'positive supply shock' from AI leading to high growth and low inflation, and supports President Trump's optimistic growth outlook.