Hassett Questions Further Federal Reserve Rate Hikes, Deepening White House–Fed Divide
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AT A GLANCE
Hassett questioned continued rate hikes, as divisions between the White House and the Federal Reserve over interest rates and independence intensified.
Article
【Hassett questions the Fed’s continued rate hikes as divisions between the White House and the Fed intensify】
Kevin Hassett, director of the U.S. National Economic Council, said at local time September 23 at a Georgetown University event that he questioned the Fed’s recent rate-hike decision, saying that the recent annualized level of core inflation had approached 2%, and therefore he did not understand why the Fed was still considering further rate hikes. Hassett also criticized several Fed officials not appointed by Trump for publicly supporting continued rate hikes, saying that Fed Chair Kevin Warsh is currently managing an unusually politicized Federal Reserve. He said that restoring the Fed’s independence remains an issue Warsh needs to prioritize. Previously, the Fed September 16 raised the federal funds target range by 25 basis points to 3.75%to 4%, marking its first rate hike since 2023. The latest projections show that, of the 18 officials, 16 expect that 2026 will still require at least one more rate hike. Hassett also singled out Fed Governor Michael Barr and former Chair Jerome Powell, saying that both remained on the Board after concluding their respective leadership roles, departing from the past practice of chairs and vice chairs leaving the Board after their terms ended. Barr also recently said that further rate hikes may still be necessary to bring inflation down sustainably to the 2%target.
Kevin Hassett, director of the U.S. National Economic Council, at September 23 a Georgetown University event questioned the Fed’s recent rate-hike decision.
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Hassett stated that the annualized core inflation rate has recently approached 2%, and that he does not understand why the Federal Reserve is still considering further rate hikes.
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The Fed September 16 raised the federal funds target range by 25 basis points to 3.75%to 4%。
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The latest projections show that, among 18 Federal Reserve officials, 16 expect that at least further rate hike will still be needed in 2026.
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Hassett criticized several Federal Reserve officials not appointed by Trump for supporting continued rate hikes, and said that Federal Reserve Chair Kevin Warsh is managing an unusually partisan Federal Reserve.
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Hassett also raised the issue of Federal Reserve Governor Michael Barr and former Chair Jerome Powell remaining on the Board of Governors.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
This material describes Hassett’s public questioning of continued rate hikes, as well as his criticism of politicization within the Federal Reserve and of its independence. It also lists the Federal Reserve’s recent rate-hike decisions and officials’ forecasts for future rate hikes.
Why it matters to readers
Public divisions have emerged over the interest-rate path and Federal Reserve independence, potentially increasing market uncertainty about future monetary policy. The specific impact still depends on subsequent official remarks, inflation data, and policy coordination.
Rate hikes usually mean higher borrowing costs; the material’s core point is that a White House official believes rate hikes should not continue, while some Federal Reserve officials still believe further hikes may be necessary.
Risks and unknowns
The material comes from a single source, and the related claims require verification from additional sources.
Some of the titles and names in the material require further verification.
The material does not explain whether rate hikes will continue or how core inflation and employment data will change.
The material does not explain whether the public disagreement between the White House and the Federal Reserve will lead to specific personnel or policy measures.
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Related concepts
Federal funds rate
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