Kevin Hassett recently fielded questions about interest rate policy at a major CEO gathering. When pressed on how much rates should drop, he drew an interesting parallel: we might be standing at the edge of a transformational era similar to the 1990s boom.

But here's the catch—he emphasized the critical need to monitor inflation closely. You can't just slash rates aggressively without watching whether price pressures start heating up again.

The question about specific rate targets was raised, though the response seemed deliberately measured. It's classic policymaker territory: acknowledge the potential for significant economic shifts while maintaining vigilance on inflation dynamics. The balancing act between fostering growth and preventing runaway prices remains the central tension in rate decisions.