Kevin Hassett, a senior White House official, has criticized Federal Reserve officials who are pushing for further interest rate hikes. The criticism targets Fed officials not appointed by the Trump administration and follows the Fed's most recent 25-basis-point increase, with markets now pricing a lower chance of another hike at the October meeting.
Kevin Hassett, a senior White House official, has publicly criticized Federal Reserve officials who are advocating for further interest rate hikes. His criticism is directed at Fed officials not appointed by the Trump administration, underscoring tensions over the direction of monetary policy.
The Fed recently raised its benchmark federal funds rate by 25 basis points to a target range of 3.75% to 4.00%, marking the first rate hike since 2023. That move aligns with the Fed's own projections of a median rate of 4.1% by the end of 2026, which suggested room for additional increases.
But Hassett's remarks appear to signal a less favorable environment for further hikes. Following his comments, market pricing shows a moderate decrease in the likelihood of a 25-basis-point increase at the Fed's October 2026 meeting. The current odds for an October hike stand at 63.5% YES.
Hassett's comments mark a public break between a senior White House official and the Fed officials pushing for more hikes.
Source: Crypto Briefing
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