Hassett criticizes Fed rate-hike advocates as October odds fall to 63.5%

  • Kevin Hassett criticized Federal Reserve officials advocating additional interest rate increases.
  • The Federal Reserve raised rates 25 basis points to 3.75%-4.00%, its first hike since 2023.
  • October 2026 rate-hike odds stand at 63.5% YES after a moderate decline in market pricing.

Kevin Hassett, a senior White House official, criticized Federal Reserve officials advocating further interest rate hikes, particularly those not appointed by the Trump administration. The Federal Reserve recently raised its benchmark federal funds rate by 25 basis points to a target range of 3.75% to 4.00%, its first increase since 2023. The move is consistent with the Fed's projection of a median rate of 4.1% by the end of 2026, leaving room for additional increases. Market pricing now shows a moderate decline in the likelihood of a 25-basis-point hike at the October 2026 meeting, although the current probability remains 63.5% YES. Investors and policymakers will watch inflation and employment data, comments from Federal Reserve Chair Jerome Powell and other officials, White House responses, changes in the Fed's internal consensus, and geopolitical developments affecting the U.S. economy. The material also promotes live prediction-market analysis powered by Vera and invites readers to sign up.

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