White House economic advisor Hassett just made a statement—the Federal Reserve should consider cutting interest rates.

Why is this interesting? Let’s look at it from three angles:

**First, the speaker is no ordinary person.** Hassett isn’t just a typical think tank expert; he’s widely considered a leading candidate for the next Fed chair. For him to call for a rate cut now is like a referee blowing the whistle before even stepping onto the field—how could the market not get excited? This kind of “pre-announcement pressure” sends a signal that’s more direct than any economic data.

**Second, there’s coded language in the wording.** “Cautious rate cuts” sounds conservative, but it’s actually testing the boundaries. The White House’s stance is clear—the easing cycle can begin, and now it’s just up to the Fed to play along. Conveying political pressure through “suggestions” like this is much subtler than issuing direct orders.

**Third, it’s essentially a game of expectation management.** Using the status of someone who may soon be in charge to release dovish signals ahead of time gets the market excited early. Regardless of when actual policy changes happen, expectations alone can move asset prices. This is a classic case of using discourse power to sway market sentiment.

To put it plainly: when someone who hasn’t officially started cooking is already telling the kitchen how to handle the heat, the real focus isn’t on how the meal will turn out, but on the power transition drama unfolding at the stove.

**But don’t go all in just yet.**

There are countless variables between politicians’ talk and actual policy implementation. The market often prices in expectations early, so when the real rate cut arrives, it can turn into a “sell the news” event. Don’t let yourself become the retail investor burned as fuel in this political performance.

Hopefully, your portfolio can read between the lines in the corridors of power, rather than becoming a casualty of the script itself.

(This article is for market observation only and does not constitute investment advice.)