Kevin Hassett, serving as the director of the National Economic Council, attempted to clarify the administration's stance following President Trump’s recent comments linking trade policy to Federal Reserve interest rate decisions. The President had previously suggested that a trade war could be initiated if the Fed failed to lower rates, a statement that sparked concern among market analysts and economists regarding the stability of international trade relations.

In his remarks, Hassett sought to temper the intensity of the President's threat. He stated, "I don't expect the trade’s going to go to zero," indicating that the administration does not necessarily intend to halt all international commerce as a bargaining tool. However, Hassett confirmed that President Trump maintains a firm belief that current interest rate levels are not optimal and should be adjusted downward. The administration's strategy appears to involve using trade policy as leverage to influence the independent central bank's monetary policy, a move that has historically been viewed as unconventional and potentially disruptive to market expectations. While Hassett’s comments suggest a more measured approach than the President's initial rhetoric, the underlying tension between the White House and the Federal Reserve remains a focal point for economic observers.