White House economic adviser Hassett just dropped a line: inflation's clearly cooling over the past three months. Then added with a smirk—if the Fed hikes rates now, Trump will definitely have something to say about it.
The subtext here is loud. Administration sees disinflation happening in real time, so any further tightening would feel tone-deaf. This is the kind of comment that lands right before FOMC meetings when policy paths aren't yet locked in.
Markets hate mixed signals, but this one's pretty clear: the White House wants the Fed to pause or cut, not hike. Whether Powell listens is another story, but the political pressure just got turned up a notch.
The subtext here is loud. Administration sees disinflation happening in real time, so any further tightening would feel tone-deaf. This is the kind of comment that lands right before FOMC meetings when policy paths aren't yet locked in.
Markets hate mixed signals, but this one's pretty clear: the White House wants the Fed to pause or cut, not hike. Whether Powell listens is another story, but the political pressure just got turned up a notch.