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Hassett's Bold Economic Vision: 3% Growth, 1% Inflation
17 Dec
Summary
- Kevin Hassett aims for 1% inflation, lowest since 2016.
- This would mean prices doubling every 72 years.
- Forecasters doubt achieving under 2% inflation for years.
Kevin Hassett, a prominent economic advisor, has articulated a vision for the U.S. economy that includes achieving a 1% inflation rate alongside 3% growth. This ambitious goal, reminiscent of conditions in July 2016 before pandemic disruptions, would dramatically slow the pace of price increases, extending the time for consumer goods prices to double to 72 years.
Hassett suggests that economic policies, potentially those associated with former President Trump, could facilitate this return to low inflation. He believes a repeat of the economic successes seen in the late 2010s, characterized by robust growth and minimal inflation, is attainable. This perspective contrasts sharply with prevailing forecasts.
Despite Hassett's optimism, many economists and forecasters express significant doubt about achieving such low inflation levels in the near future. Inflation has remained above the Federal Reserve's 2% target since 2021, and projections indicate it will take several years to return to that benchmark, let alone the 1% target Hassett advocates.
