White House Adviser Hassett Accuses Fed of Partisanship Over Rate Hike Support
White House National Economic Council Director Kevin Hassett criticized Federal Reserve officials for supporting further interest rate hikes, questioning the need for tightening as core inflation nears 2%. Hassett accused Fed Chair Jerome Powell of managing a "highly politicized Fed" and called for restoring the central bank's independence. He specifically challenged officials not appointed by former President Trump, including Michael Barr, Susan Collins, and Alberto Musalem, who have signaled support for additional rate increases. The Fed's latest projections show 16 officials expect at least one more rate hike this year.
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Hassett Criticizes Fed Officials' Rate Hike Comments, Urges Restoring Independence
White House National Economic Council Director Kevin Hassett criticized recent comments from Federal Reserve officials supporting further interest rate hikes, expressing concern over continued tightening as core inflation approaches 2%. Hassett questioned the need for additional rate increases and accused some Fed officials not appointed by former President Trump of advocating for more hikes. He stated that Fed Chairman Warsh is managing a 'highly politicized Fed' and that restoring the central bank's independence is a key task. Hassett specifically named Fed officials Powell and Barr, noting their continued service after leaving leadership roles, which he said deviates from past norms. Several Fed officials, including Barr, Collins, and Musalem, have recently signaled support for further rate increases to bring inflation back to the 2% target. The Fed's latest economic projections indicate that 16 officials expect at least one more rate hike this year.
Read sourceWhite House Economic Adviser Hassett Questions Fed Rate Hike, Criticizes Officials
White House National Economic Council Director Kevin Hassett publicly questioned the Federal Reserve's recent interest rate hike, expressing confusion over the decision given that annual core inflation is around 2%. Speaking at a Georgetown University event, Hassett criticized the Fed for raising rates to 3.75%-4.00%, the first increase since 2023, and described the central bank under Chair John Walsh as 'unusually partisan.' He specifically targeted former Fed Chair Jerome Powell and former Vice Chair for Supervision Michael Barr, noting they have remained on the board after their leadership terms ended, breaking with historical precedent. Hassett also expressed concern about non-Trump-appointed Fed officials who have recently advocated for further rate increases, stating the Fed still has 'a lot of work to do' to restore independence. Meanwhile, several Fed officials, including Barr and Boston Fed President Susan Collins, have signaled support for additional tightening to bring inflation back to the 2% target. The Fed's latest economic projections show 16 officials expect at least one more rate hike this year.
Read sourceHassett Accuses Fed of Partisanship, Questions Rate Hikes by Non-Trump Appointees
Kevin Hassett, Director of the National Economic Council, criticized Federal Reserve officials not appointed by President Trump for supporting interest rate hikes despite what he described as mild inflation. In a Wednesday statement, Hassett questioned the rationale for raising rates when the annualized core inflation rate is only 2%, accusing Fed Chair Warsh of managing an 'abnormally partisan' central bank. He pointed to Fed officials Jerome Powell and Michael Barr, who remained as governors after their leadership terms ended, as examples of a broken tradition. Hassett expressed concern over recent hawkish comments from non-Trump appointees, including Barr, Boston Fed President Susan Collins, and St. Louis Fed President Alberto Musalem, who all supported further tightening to curb inflation. Hassett argued that restoring Fed independence is Warsh's top priority, implying the current actions undermine that goal.
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White House Adviser Hassett Criticizes Fed Officials' Hawkish Stance, Calls for Independence
On September 24, White House National Economic Council Director Larry Kudlow (referred to as Hassett in the source) criticized recent statements by Federal Reserve officials supporting further interest rate hikes. He argued that with core inflation already near 2%, continued tightening is unwarranted, questioning 'why raise rates.' Hassett specifically challenged officials not appointed by President Trump for their hawkish remarks. He accused Fed Chair Jerome Powell of running a 'highly politicized Fed' and said restoring the Fed's independence is a key task. Hassett also criticized senior Fed officials, including Powell and Vice Chair for Supervision Michael Barr, for remaining at the Fed after leaving their original leadership roles, breaking with past norms. The report notes that several Fed officials, including Barr, Collins, and Musalem, have recently signaled support for further rate increases. The Fed's latest economic projections show 16 officials expect at least one more rate hike this year.
Read sourceHassett Criticizes Fed Officials' Recent Rate Hike Comments, Calls for Restored Independence
White House National Economic Council Director Kevin Hassett on Wednesday criticized recent comments from Federal Reserve officials supporting further interest rate hikes, expressing concern over continued tightening as core inflation nears 2%. Hassett questioned the need for additional rate increases and specifically challenged remarks from officials not appointed by former President Trump. He accused Fed Chair Jerome Powell of managing a "highly politicized Fed" and stated that restoring the central bank's independence is a key task. Hassett also criticized the practice of former Fed leaders, including Powell and Michael Barr, remaining on the board after their leadership terms ended, calling it a departure from past norms. The criticism comes after several Fed officials, including Michael Barr, Susan Collins, and Alberto Musalem, signaled support for further rate hikes. The Fed's latest economic projections show 16 officials expect at least one more rate increase this year.