According to a December briefing, former White House NEC director Kevin Hassett criticized the pace of Fed rate cuts, saying the U.S. lags global peers. He noted a solid 4.3% Q3 GDP but argued monetary policy hasn’t fully adapted to structural shifts. He pointed to AI-driven productivity gains that lift output while creating medium‑term disinflationary pressure, reducing the case for high real interest rates. The remarks shift the debate toward central bank policy normalization rather than inflation alone.

Globally, Hassett argues that U.S. normalization hesitancy resembles relative tightening. With three rate cuts this year, including December’s 25bp move, intra‑Fed dissent has risen, signaling policy divisions. He maintains independence but favors a growth‑oriented path that could influence a future Fed chair nomination.

Analysts see a transition where AI productivity reshapes the inflation–growth dynamic. Higher rates weigh on households and small firms, increasing the risk of delaying relief; markets price in a potential policy lag correction as the cycle matures.