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White House Council of Economic Advisers Chairman Kevin Hassett addresses reporters during the daily briefing at the White House in Washington, U.S. February 22, 2018.
Jonathan Ernst | Reuters
President-elect Donald Trump has selected Kevin Hassett to head the National Economic Council, positioning him at the heart of the administration’s policy deliberations on a wide range of issues, from trade and taxes to deregulation.
This appointment brings Trump closer to completing his economic team, with the position of U.S. trade representative remaining the only key vacancy.
Trump made the announcement on Truth Social, his preferred social media platform.
In a separate announcement, Trump also named attorney Jamieson Greer as the U.S. Trade Representative.
During Trump’s previous presidency, Hassett served as the chairman of the Council of Economic Advisers for two years. In this role, he supported the Republican’s corporate tax cuts and defended Trump’s controversial implementation of punitive tariffs.
The 62-year-old Hassett also collaborated with Trump’s son-in-law, Jared Kushner, on immigration policy and supported a policy shift to end waivers of sanctions for nations that purchased Iranian oil.
The appointment comes amidst Trump’s renewed vow to escalate trade tensions by imposing an additional 10% tariff on all Chinese goods entering the U.S. and threatening a 25% tariff on all products from Mexico and Canada. Such a drastic move would effectively dismantle the existing regional free trade agreement.
Trump, who is scheduled to be inaugurated as the next U.S. president on January 20, cited concerns over illegal immigration and illicit drug trafficking as justifications for his proposed tariff increases.
Late last week, Trump signaled his intention to nominate Scott Bessent, the founder of hedge fund Key Square Group and a seasoned market veteran, as his Treasury secretary.
What specific economic data should policymakers monitor to assess the impact of Trump’s policies on inflation?
## Potential for Inflation Under the Trump Administration
**Interviewer:** Welcome to the program. Today we’re discussing the Trump administration’s economic policies and their potential impact on inflation. Joining us is Dr. [Guest Name], an economist specializing in macroeconomics. Dr. [Guest Name], thank you for being with us.
**Guest:** It’s a pleasure to be here.
**Interviewer:** We’ve seen some significant economic changes proposed by the incoming administration, including tax cuts and infrastructure spending. Many economists are concerned about the potential for these policies to trigger inflation. What are your thoughts on this?
**Guest:** It’s certainly a legitimate concern. As we know from basic economic principles, increasing the money supply, be it through tax cuts or government spending, can lead to inflation if not carefully managed. [[1](https://www.britannica.com/money/inflation-economics)] While stimulating the economy can be beneficial, doing so without addressing potential inflationary pressures could erode purchasing power and harm consumers in the long run.
**Interviewer:** So, what factors should the administration consider to mitigate these risks?
**Guest:** Transparency and careful monitoring are crucial. The administration needs to clearly articulate its plans and how it intends to measure and control inflation. Additionally, they must be willing to adapt their policies based on economic data and expert advice.
**Interviewer:** What specific indicators should we be watching for in the coming months?
**Guest:** Key indicators to watch include the Consumer Price Index (CPI), Producer Price Index (PPI), and core inflation rates. These will give us an indication of how prices are changing for both consumers and businesses. We should also pay attention to wage growth, as increasing wages can contribute to inflationary pressures.
**Interviewer:** Thank you, Dr. [Guest Name], for sharing your insights.
**Guest:** My pleasure. It’s an important discussion to have as we navigate this new economic landscape.