White House National Economic Council Director Hassett questions the necessity of Fed rate hikes and criticizes some officials for advocating further tightening policies.

According to Jinse Finance APP, senior economic officials at the U.S. White House publicly questioned the necessity of the Federal Reserve’s recent interest rate hikes on Wednesday, and criticized some Fed policymakers not appointed by President Trump for still advocating further tightening of monetary policy even when inflation is already relatively moderate, once again highlighting divisions between the White House and some Fed officials over interest rate policy.

Kevin Hassett, Director of the White House National Economic Council, said at an event at Georgetown University on Wednesday that, with the recent annualized core inflation rate around 2%, he is puzzled by the Federal Reserve’s choice to raise rates. Hassett stated: “Why are they still raising interest rates?” He also said Fed Chair Waller is now managing an “exceptionally partisan Federal Reserve.”

Last week, the Federal Reserve raised its benchmark interest rate by 25 basis points to 3.75%-4.00%, marking the first hike since 2023. Hassett said that, based on his assessment of current economic data, he is concerned about the reasons behind the Fed's decision.

He also took aim at former Fed Chair Powell and Fed Board Member and former Vice Chair for Supervision Barr. Hassett pointed out that, historically, the Fed Chair and Vice Chair typically leave the central bank after their leadership terms end, but this tradition is not being maintained now.

After ending his term as Chair earlier this year, Powell continued serving as a Board Member. Previously, he had public clashes with the Trump administration over the independence of monetary policy. Barr, after stepping down from the Vice Chair for Bank Supervision at the Fed last year, has also remained as a Board Member.

In addition, Hassett expressed dissatisfaction with Fed officials not appointed by Trump. He stated: “The market is also worried, because in recent days, many officials not appointed by President Trump have been making statements claiming we still need substantial rate hikes.” He then remarked that the Fed still has much work to do to “restore its independence,” adding this is one of Chair Waller’s current priorities.

Meanwhile, several Fed officials have recently continued to deliver hawkish signals. Fed Board Member Barr said on Wednesday that further rate hikes may still be needed to bring inflation back down to the central bank’s 2% target. Boston Fed President Susan Collins said she supports the most recent rate hike decision; St. Louis Fed President Alberto Musalem also stated that, to further curb price pressures, additional rate hikes may still be necessary.

The Fed’s latest economic forecasts show that 16 officials expect at least one more rate hike this year. Meanwhile, market expectations that U.S. interest rates will remain high for a longer period have also risen significantly in recent days.