Hassett Says Fed Has No Excuse to Hold Rates After Soft CPI
White House adviser Kevin Hassett argued cooler inflation removes any justification for the Fed to keep rates elevated.
White House Council of Economic Advisers Chair Kevin Hassett declared Wednesday that the Federal Reserve has no "excuse" to keep interest rates high following a consumer price index reading that came in significantly below expectations, making his case live on CNBC in unusually blunt terms for a sitting presidential adviser.
Hassett credited President Donald Trump's economic policies for the surprisingly tame inflation data, framing the report as validation of the administration's approach to trade and fiscal management. The remarks represent one of the most direct public pushes by a White House official for the Fed to cut borrowing costs since Trump returned to office.
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The adviser also weighed in on the future leadership of the central bank, expressing confidence that Kevin Warsh — widely discussed as a potential Federal Reserve chair — would steer the institution toward what Hassett called the "right answer" on monetary policy. The comment signals the administration's continued interest in shaping the Fed's direction ahead of Chair Jerome Powell's term expiring in May 2026.
The softer-than-expected CPI print has reignited debate inside Washington and on Wall Street about whether the Fed's prolonged pause on rate cuts remains justified. Hassett's on-air pressure campaign adds a political dimension to what the central bank has insisted is a purely data-driven deliberation, potentially complicating Powell's messaging in the weeks ahead.
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