Federal Reserve Chairman candidate Haslett: The US economic recovery is taking off, and AI productivity will help lower interest rates.

White House economic advisor Kevin Hassett said that the U.S. economic growth data released on Tuesday exceeded expectations, which he attributed to President Trump's trade policies and investments in artificial intelligence (AI), indicating that future job growth will accelerate. Hassett said in an interview, "This is indeed a fantastic number, a great Christmas present for the American people." "The economic rebound is really taking off, and there are a lot of people transitioning from being on the sidelines to entering the labor market... If we can maintain GDP growth in the 4% range as we enter the new year, we will see the monthly non-farm payroll numbers back in the range of 100,000 to 150,000." Data showed that in the third quarter of 2025, the U.S. gross domestic product (GDP) increased by 4.3% compared to the second quarter's 3.8% and market expectations of 3.3%. The U.S. Department of Commerce stated that the accelerated economic growth in the third quarter was mainly due to an increase in consumer spending and exports, as well as government spending. Personal consumption expenditures, which account for about 70% of the U.S. economy, grew by 3.5%, government consumption and investment increased by 2.2%, and exports grew by 8.8%. However, non-residential fixed investment, which reflects business investment, only increased by 2.8%, significantly lower than the previous quarter's 7.3%. In terms of employment, the monthly non-farm payroll numbers have significantly decreased compared to last year, and this trend continues in the fourth quarter. Economists believe that this is both related to the Trump administration's stricter immigration control leading to a decrease in immigrants and softer labor demand. Data released last week showed that in November, non-farm payrolls increased by 64,000, while in October, they decreased by 105,000. Furthermore, a separate report from the World Large Enterprises Federation released on Tuesday showed that U.S. consumer confidence deteriorated in December due to concerns about employment and income. Hassett played down this pessimistic sentiment, pointing out that consumer confidence is usually unrelated to actual economic data. At the same time, he said that consumers have reasons to be optimistic about inflation slowing down and wage increases. Hassett is one of the four finalists that Trump is considering for the successor to Federal Reserve Chairman Powell next year. He once again called for a lowering of the Fed's policy rate, stating that the productivity gains from AI will suppress inflation. He said, "If you look at central banks around the world, the U.S. is far behind in terms of cutting rates."