Part 2/9:
Hassett likened the Federal Reserve's monetary policy to steering a "Queen Mary," emphasizing the importance of slow, steady adjustments. He pointed out that the decision to increase rates by 25 basis points—rather than a larger move—reflects cautious, data-driven policymaking.
"Moving kind of slow and steady and heading towards a target, watching the data come in, that's what prudent policy is," Hassett explained. While some colleagues favored a more aggressive 50-basis-point increase, Hassett supported the measured approach, viewing it as a positive beginning toward lowering rates from historically high levels.