White House NEC Director HASSETT on Wednesday criticized recent Federal Reserve
officials advocating further rate hikes, saying additional tightening is
worrying with core inflation near 2% and asking “why raise rates.” He questioned
comments from officials not appointed by Trump and said Fed Chair KEVIN WARSH is
running a “highly politicized” Fed, calling restoration of the central bank’s
independence a key priority. HASSETT also criticized senior Fed officials
remaining in post after leaving leadership roles, naming Powell and Barr as
departures from past transition norms. Several Fed officials have sent hawkish
signals recently: Barr said further hikes may be needed to bring inflation back
to 2%, and Collins and Musallam also expressed support for additional
tightening. The Fed’s latest projections show 16 officials expect at least one
more rate hike this year.
