Hassett Questions Further Fed Rate Hikes as White House Tensions Rise
The National Economic Council director said core inflation is near 2% after the Fed raised its policy rate to 3.75%–4% on Sept. 16.
National Economic Council Director Kevin Hassett questioned further Federal Reserve rate hikes on Sept. 23, intensifying a policy dispute between the White House and the central bank as officials weigh another increase in 2026.
Hassett said recent annualized core inflation was near 2% and questioned why the Fed would still consider raising rates. He also criticized several Fed officials who were not appointed by President Donald Trump for publicly supporting additional hikes.
The Fed raised its federal funds target range by 25 basis points to 3.75%–4% on Sept. 16, marking its first rate increase since 2023. The latest projections showed 16 of the central bank’s 18 officials expecting at least one more hike in 2026.
Hassett said Fed Chair Kevin Warsh is managing an unusually partisan central bank and should prioritize restoring its independence. He also pointed to Fed Gov. Michael Barr and former Chair Jerome Powell remaining on the board after leaving their leadership roles, describing that as a departure from past practice.
Barr has said another rate increase may still be needed to bring inflation sustainably back to the Fed’s 2% target.
