Fed Keeps Rates Unchanged... White House Says "We Respect Independence, But Are Disappointed"

Kevin Hassett's Interview with Fox News
"We Do Not Always Agree with Powell"
"Incorrect Economic Modeling on Tariffs"

On May 7 (local time), the White House expressed disappointment after the U.S. central bank, the Federal Reserve (Fed), decided to keep its benchmark interest rate unchanged, despite pressure from President Donald Trump to cut rates.

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Kevin Hassett, Chairman of the White House National Economic Council (NEC), said in an interview with Fox News that day, "We respect the Fed's independence, but we do not always agree with Chairman Jerome Powell and their policies." He added, "We are disappointed that they used incorrect economic modeling regarding tariffs."

He continued, "The Fed says that Wall Street believes tariffs will lead to a recession," but countered, "On the other hand, we have very strong employment indicators, and the inflation they predicted has not occurred."

Chairman Hassett also pointed out, "When the Fed did not oppose former President Joe Biden as he printed money and created 20% inflation through spending, it makes you wonder if there is something wrong with their models or political views."

Regarding warnings from some quarters that store shelves could be emptied due to the tariff war with China, Chairman Hassett said, "There are currently rumors designed to provoke fear, but I check real-time data every day to monitor for any supply shortages," and emphasized, "What I can report is that there are still plenty of goods on the shelves."

He further stated, "Imports from China have decreased, but imports from many other countries have increased significantly," stressing, "Therefore, there is no need to worry about such rumors."

He added, "President Trump tried something during his previous term, and we saw that it really worked," and concluded, "Now we are doing it on a much larger scale, and that is exactly what needs to be done."