Key facts
- A senior White House official stated the administration will respect the Federal Reserve's process and decisions regarding interest rates.
- President Trump has frequently called for the Fed to lower rates since returning to office in January 2025.
- The Fed is meeting to decide whether to raise borrowing costs.
- Inflation has been driven higher by oil prices and strong consumer spending.
- Investors are largely expecting a rate hike from the central bank.
- Long-term Treasury yields have risen to near two-decade highs.
A senior White House official indicated that the administration will respect the Federal Reserve's decision on interest rates, a notable shift from President Trump's consistent calls for rate reductions. Hassett, a top White House aide, stated that whatever the Fed decides, "we’re going to respect the process and understand that he is doing what he and the committee think is correct." This comes as the Fed begins a two-day meeting to determine whether to increase borrowing costs.