Kevin Hassett

And so they've got plenty of room to cut rates.

They'll do a little bit this time, but they'll probably need to do some more.

Plenty of room, which plenty is more than 25 points.

Correct.

Okay.

So the loyalty, if you're Fed chair, would be to what the president wants or to your economic independent judgment.

There's a huge amount of positive news that the president is going to be breaking this week about the economy. You know, we've got a person who actually approached the studio with me, walked with me, who's tracking the openings, the groundbreakings for the new factories that are, you know, in the trillions of dollars of announcements that the president's been making. And we're up to almost 30 of those that actually the groundbreakings have happened. And so there's a lot of positive news that's positive for people's jobs, for people's incomes and for inflation.

100% of its sales in the U.S.

were the only customer for them, and they have like 1% of the U.S.

market.

And there are lots of other firms selling the same product into the U.S.

Well, then if we put a tariff on that guy, then it's really going to cause some harm to that firm.

And so what we did is we actually went through all the different tariff classes.

I guess, what are the codes called?

HS10.

Yeah, okay.

We went through them all and then figured out the relative elasticities and then maximized the sort of, or minimized the potential harm.

On this one, one of the things that we've learned is that one of the reasons why the U.S.

has a really persistent trade deficit is that we have a few trading partners

like have basically a policy in their country to create jobs and dump product into the U.S.