TREE NEWS update: White House National Economic Council Director Kevin Hassett said the administration respects Federal Reserve Governor Kevin Warsh’s decision to vote with other officials in favor of raising interest rates, though Hassett said he disagreed with the hike. Hassett added that Warsh acted “for the right reasons” and that Fed Chair Jerome Powell should leave.
Hassett Says White House Respects Warsh’s Vote to Raise Rates, Powell Should Go
The notable signal here is not the rate hike itself but the White House's selective deference: a sitting Fed governor who breaks with the administration is publicly defended as acting "for the right reasons," while the chair is told to go. That framing matters because it suggests political pressure is being applied to the Fed's composition rather than its decisions, with the target being the chair's seat. Whether this stays rhetorical or translates into any formal challenge to Fed leadership is the open question worth tracking.
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