A White House advisor expects interest rates to be cut following the decline in energy prices

White House economic advisor Kevin Hassett said on Friday that the Federal Reserve (the US central bank) will be able to lower interest rates once the reopening of the Strait of Hormuz leads to a rapid decline in energy prices.

“There will be a rapid decline in energy prices once the strait opens,” he told Fox Business. “Once energy prices start to decline, don’t forget that that will put pressure on inflation to come down… I think the outlook for the Fed’s ability to lower interest rates will be very strong.”