Hassett says current data make rate hikes hard to justify, easing backdrop for Warsh

The White House National Economic Council director said July 30 inflation data made Federal Reserve Chair Kevin Warsh’s job easier and said on July 31 that current data do not support higher rates.

Summary

White House National Economic Council Director Kevin Hassett said July 30 inflation data made Federal Reserve Chair Kevin Warsh’s job “a little bit easier” and said on July 31 that current data make it difficult to argue for an interest-rate increase. Asked whether he still had confidence in Warsh, Hassett replied, “Of course,” according to Walter Bloomberg. The remarks suggest the latest economic readings have improved the policy backdrop and made the case for further U.S. rate hikes harder to justify.

Terms & Concepts
  • Federal Reserve: U.S. central bank that sets monetary policy
  • National Economic Council: White House body advising on economic policy
  • interest-rate increase: A rise in benchmark borrowing costs.