White House's Hassett criticizes Fed officials' rate hike comments, calls for restored independence
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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.
Source report
September 24 — Kevin Hassett, Director of the White House National Economic Council, on Wednesday criticized recent remarks by Federal Reserve officials who have advocated for further interest rate increases, expressing concern over continued tightening as core inflation approaches 2%.
"Why raise rates again?" Hassett questioned, casting doubt on statements from officials not appointed by former President Donald Trump who have recently voiced support for additional rate hikes.
Hassett stated that Federal Reserve Chair John Walsh is managing a "highly politicized Fed," and that restoring the central bank's independence is a critical task ahead.
He also criticized several senior Fed officials for remaining at the institution even after leaving their original leadership roles. Hassett specifically named Jerome Powell and Michael Barr, noting that this practice deviates from historical norms following changes in Fed leadership.
Recent comments from multiple Fed officials have signaled a hawkish stance:
- Michael Barr indicated that further rate increases may be necessary to bring inflation back to the 2% target.
- Susan Collins and Alberto Musalem also expressed support for additional rate hikes.
According to the Fed's latest economic projections, 16 officials expect at least one more rate hike this year.
Source
金十数据Western