The White House backs the Fed's rate decision but sees no case for a hike
Kevin Hassett, the top White House economic adviser, said on CNN's State of the Union that the administration will support the Federal Reserve's rate decision this week and that Trump will accept it if the central bank raises interest rates. In the same interview he argued that recent inflation data does not justify another increase. The remarks came on the weekend before the Fed's policy decision and describe an administration that respects the decision while preferring that a hike is avoided.
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A pledge of support whatever the decision
Kevin Hassett, the top economic adviser in the White House, appeared on Sunday on CNN's weekly politics programme State of the Union and said the administration will support the rate decision that the Federal Reserve, the US central bank, has on its agenda this week. Asked whether Trump would accept a potential increase in interest rates, he answered yes. The White House thereby declared before the meeting that it would respect the central bank's outcome regardless of what that outcome contains.[1], [2]
Hassett sees no case for another increase in the inflation data
In the same interview Hassett argued that the recent inflation data does not justify another rate increase. The administration's position thus has two parts: a promise to back the Federal Reserve's decision, and a view that an increase is not warranted. Hassett placed the two side by side, respecting the central bank's decision while making clear that he would prefer a hike to be avoided in the light of the latest figures.[1]
The weekend before the Fed's policy decision
The remarks came on the weekend before the Federal Reserve's policy decision, with that decision on this week's agenda. Hassett's answers on CNN made public, ahead of the meeting, that the administration would accept the outcome even if it is an increase. The picture that emerges is of an administration that respects the decision itself while preferring that a rate rise is avoided.[1], [2]
