Hassett says AI boom one argument for lower interest rates

National Economic Council Director Kevin Hassett, the front-runner to be nominated chairman of the Federal Reserve, argued that an artificial intelligence boom could afford the central bank the opportunity to rapidly lower its interest rate target.

President Donald Trump has pushed hard for lower rates on the grounds that doing so would allow people to more easily finance major purchases, such as cars and homes. However, Hassett made the more nuanced argument that a positive supply shock from the AI boom could be a reason to lower interest rates.