On May 25, Kevin Hassett, chief economic advisor to President Trump, stated that he believes a decline in oil prices will ultimately create room for the Federal Reserve to cut interest rates. "We again expect that once an agreement is reached, energy prices will plummet," Hassett said. "When that happens, the Fed will have enough space to take the right actions and lower rates." He emphasized his respect for the Fed's independence and praised Kevin Walsh, who was sworn in as Fed Chairman last Friday. Although the surge in US fuel prices caused by Iran's closure of the Strait of Hormuz poses an increasing political risk for Trump and his Republican Party ahead of the November midterm elections, Hassett believes that accelerating inflation is primarily driven by energy prices. "If you look at the recent data reports, energy prices are absolutely concerning, but core prices have hardly changed at all," he said. "I think once we see energy prices retreat, due to the decline in energy prices, you might actually see negative inflation." (Jinshi)