Former White House financial consultant states more Fed hiking is coming

Kevin Hassett: We're going to see another inflation wave stimulated by high growth and energy prices

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WASHINGTON– A previous White House financial expert on Tuesday stated he believes the Federal Reserve will trek rate of interest once again amidst increasing inflation numbers and energy costs.

“The hiking is coming again,” Kevin Hassett, previous chairman of the Council of Economic Advisers under then-President Donald Trump, informed CNBC’s “Squawk Box.”

“The inflation numbers are going to surprise on the upside because gas prices have gone up so much and … we’re looking probably for a top-line (consumer price index) of 0.8 or so,” he included.

Hassett was referencing heading inflation, a procedure of the overall inflation within the economy consisting of products such as food and energy. The CPI increased 0.2% for the month in July and 3.2% compared to the year prior. Though the yearly rate of heading inflation was available in listed below expectations, it marked a boost from 3% in June, according to the U.S. Bureau of Labor Statistics.

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Fed Chair Jerome Powell alerted recently that rate of interest might be raised once again to decrease inflation back to its 2% objective. The Fed’s Federal Open Market Committee has actually raised rate of interest 11 times because March 2022.

“We’re going to see kind of a sawtooth inflation cycle,” Hassett stated. “It’s going to be kind of like the Covid waves where it feels like Covid’s under control and then there’s a new variety.”