White House Economic Adviser Kevin Hassett accused the Federal Reserve of allowing politics to influence its interest rate decisions, citing a pattern of moves that he says raise questions about the central bank’s impartiality.
Speaking on Fox Business, Hassett pointed to the Fed’s decision to cut rates ahead of last year’s presidential election and its reluctance to cut further under President Donald Trump.
“If you look at the pattern of the Fed movements over the last few years, you could wonder, were they putting politics ahead of their mandate?” Hassett said.
The Fed slashed rates three times between September and December, but has since held steady, citing inflation risks tied to Trump’s trade policies. Officials deny political influence in their decisions.
Hassett, considered a leading candidate to replace Jerome Powell as Fed chair next year, also defended Trump’s firing of the Bureau of Labor Statistics chief following a weak July jobs report.
