White House Says It '100%' Supports Fed's September Decision While Trump Continues to Press for Rate Cuts
nashnova research
White House adviser Kevin Hassett said the administration will '100 percent support' whatever the Fed decides in September, yet Trump demanded the same day that America get the world's lowest rates — with August CPI beating expectations and markets pricing an 86% chance of a September hike, the mixed signals make the Fed's path even harder to read.
What did the White House actually say?
Economic adviser Hassett said on the 13th that the White House will "100 percent support" whatever Chair Kevin Warsh and his committee decide.
He then added: both Trump and he see no reason to raise rates.
This means → the "100 percent support" comes with a clear directional hint — we back you, just don't hike.
What did Trump say in Ireland?
At the Irish Open, Trump told reporters the U.S. should pay the lowest interest rates in the world, "no matter what formula they use."
Asked whether he expects the Fed to hike at next week's meeting, he answered: "I don't know."
In plain terms = Trump wants cuts, refuses to endorse the hike the market expects, and leaves all the pressure on the Fed.
Why does the August CPI number matter so much?
These remarks came right after August CPI beat expectations — consumer prices rose faster than forecast.
Per Bloomberg, trader pricing now shows an 86% probability of a September hike; two hikes this year are fully priced in.
This means → the debate has shifted from "hike or not" to "how much," and the White House's call for cuts runs directly against the market's direction.
What pressures is the Fed facing?
The U.S.–Iran war, now nearly seven months old, has pushed energy prices higher; tariff policy adds further uncertainty to the inflation outlook.
Chair Warsh had already made rate-path forecasting harder by scaling back forward guidance — the practice of telling markets in advance what the Fed plans to do.
This reflects a Fed caught between two forces: inflation data demanding hikes, and White House political pressure demanding cuts.
How has Trump treated the Fed before?
He repeatedly criticized former Chair Jerome Powell for not cutting rates enough and recently suggested Warsh's room to maneuver may be constrained by what he called a "very political" board.
He also floated cutting off trade with deficit-running economies if the Fed refuses to cut — though markets widely doubt the threat can actually push rates lower.
In plain terms = Trump has plenty of pressure tools, but none that can directly order the Fed to cut.
Why is the timing especially sensitive?
November midterm elections are approaching, and voter frustration over rising living costs keeps building.
The rate path is becoming a key political variable — hiking tames inflation but raises borrowing costs; standing pat risks further price increases.
This means → whatever the Fed chooses, the outcome will be pulled into the election narrative. Warsh faces not just an economic decision but a political minefield.
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