{"id":31417,"date":"2023-05-02T23:08:59","date_gmt":"2023-05-02T23:08:59","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/exclusive-white-houses-boushey\/"},"modified":"2023-05-02T23:17:19","modified_gmt":"2023-05-02T23:17:19","slug":"exclusive-white-house-fed-interest","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/exclusive-white-house-fed-interest\/","title":{"rendered":"Exclusive-White House: Fed interest rates having negative effect on banking"},"content":{"rendered":"\n<p>WASHINGTON (Reuters) -A top White House economist on Tuesday said Federal Reserve interest rate hikes aimed at curbing inflation were having a negative impact on the banking sector, and warned Republicans against worsening the situation with their debt ceiling threats.<\/p>\n<p>Heather Boushey, a member of the White House Council of Economic Advisers, told Reuters that Republicans should not be &#8220;playing games&#8221; with the U.S. economy, by pegging an increase in the $31.4 trillion debt limit to budget cuts.<\/p>\n<p>&#8220;The economy remains, it&#8217;s been strong. You don&#8217;t want to be pushing it off of the course that it&#8217;s on,&#8221; Boushey said, urging Republicans to back a debt ceiling increase without conditions. &#8220;The Fed is raising interest rates in the hope of reducing inflation. That is having this negative effect on the banking sector. Why would we add to that?&#8221;<\/p>\n<p>Boushey said Congress could easily remove the risk of default by raising the debt ceiling, while the issue of interest rates and their impact on bank assets was a far more complicated question that no single entity had the power to solve.<\/p>\n<p>&#8220;This is terrible. It&#8217;s scary. We should not be be playing these kind of games with the U.S. economy and with the full faith and credit of the United States,&#8221; Boushey said. &#8220;We need to be focused on how we&#8217;re going to keep the economy moving.&#8221;<\/p>\n<p>Boushey&#8217;s comments come as Fed governors are gathered for a two-day policy meeting that analysts expect to result in a 25-basis-point increase in the federal funds rate on Wednesday.<\/p>\n<p>House Republicans passed a bill to raise the debt limit last week that includes steep cuts to spending from healthcare to air-traffic controllers, which the Democratic-controlled Senate and President Joe Biden say they will not approve.<\/p>\n<p>Biden on Monday summoned the four Senate and House of Representatives leaders &#8211; two fellow Democrats and two Republicans &#8211; to the White House next week, after the U.S. Treasury warned the government could run short of cash to pay its bills as soon as June 1.<\/p>\n<p> (Reporting by Andrea Shalal; Editing by Leslie Adler, Jonathan Oatis and Lincoln Feast.)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/exclusive-white-houses-boushey\/file-photo-u-s-president-elect-joe-biden-announces-members-of-his\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ410TF-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ410TF-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>WASHINGTON (Reuters) -A top White House economist on Tuesday said Federal Reserve interest rate hikes aimed at curbing inflation were having a negative impact on the banking sector, and warned Republicans against worsening the situation with their debt ceiling threats. Heather Boushey, a member of the White House Council of Economic Advisers, told Reuters that [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":31418,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[1223],"class_list":["post-31417","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ410TF-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/31417","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=31417"}],"version-history":[{"count":2,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/31417\/revisions"}],"predecessor-version":[{"id":31617,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/31417\/revisions\/31617"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/31418"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=31417"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=31417"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=31417"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}