Trump Adviser Says Iran Deal Could Open Door to Rate Cuts

US President Donald Trump’s economic adviser Kevin Hassett said a possible drop in oil prices could give the US Federal Reserve room to cut interest rates. He said energy prices were expected to fall if Washington and Tehran reach an agreement, creating conditions that could support a policy easing. Hassett said energy prices would likely decline sharply after a deal, which he said would provide a suitable backdrop for an interest rate cut. He added that he respects the independence of the US Federal Reserve. Trump also wrote on social media that talks with Tehran were progressing in a regular and constructive manner. The remarks linked diplomatic movement with expectations of lower energy costs and potential monetary easing in the US.