White House's Hassett Reaffirms Fed Independence, Expects Rate Cuts Soon

White House senior economic adviser Kevin Hassett on 30 July said the administration “100% respects” the independence of the Federal Reserve, seeking to allay concerns that the executive branch is pressuring the central bank. Hassett added that the Fed is “very data-dependent” and that he expects policymakers will “catch up soon” to where borrowing costs should be. His comments echo remarks on 16 July in which he urged the central bank to “return to [an] appropriate rate path.” The adviser has repeatedly aligned himself with Fed Governor Christopher Waller and Donald Trump on the direction of monetary policy. On 23 June he said both men are “right about interest rates,” and on 30 June he noted that Trump holds “strong views” that the Fed could lower rates. Taken together, Hassett’s statements underscore the White House’s view that current interest rates are higher than necessary, even as it emphasizes formal respect for the Fed’s autonomy in determining the timing and scale of any adjustments.