Fed Hikes Rates to a 22-Year High. Jean-Pierre: 'I'm Just Not Going to Comment' (July 26, 2023)

The Federal Reserve had just pushed interest rates to their highest level in more than two decades, and a reporter wanted the White House’s reaction. “And the Federal Reserve has just announced an interest rate hike by a quarter point, which brings it to the highest level in 22 years. Does the White House have a comment on that?” the reporter asked White House Press Secretary Karine Jean-Pierre on July 26, 2023 [1].

“As you know, we see the Federal Reserve as being independent. We give them the space to make sure that they are able to make monetary decision. It is up to them to make that decision. I’m just not going to comment about that — about their — about the decision today,” Jean-Pierre said, according to the official White House transcript [1].

The Fed’s statement, released at 2:00 p.m. that afternoon, said “the Committee decided to raise the target range for the federal funds rate to 5-1/4 to 5-1/2 percent.” It added: “Inflation remains elevated.” [2]

The video above shows the exchange at the July 26, 2023, briefing. Quotes are from the official White House transcript and the Federal Reserve’s statements [1][2][3].

”Not Wanting You to Comment on the Fed Decision”

The last question of the briefing tried a different door. “And then, separately, not wanting you to comment on the Fed decision, rather to comment on the White House’s view as it relates to inflation: Do you see inflation coming down from the level that it is right now, around 3 percent, even further by the end of this year?” a reporter asked [1].

“So, I’m not going to get into predictions or hypotheticals from here,” Jean-Pierre said. “We have seen from other data points, as you know, that we’ve seen inflation come down by two thirds in the past 12 months. That’s important. And a lot of that is because of the President’s economic policies.” [1]

“I’m not going to get into hypotheticals. I’m going to let the experts detect or try to figure out what inflation looks like moving forward,” she said [1].

Another reporter followed up. “You said that you see inflation easing in the response that we just gave. Is that based upon a forecast coming from the President’s economic advisors?” [1]

“That’s based on the facts. That’s based on the data that we’ve seen: CPI, PPI, all the data that we’ve seen the past couple of months,” Jean-Pierre answered. “Inflation has fallen for 12 months in a row — 12 months in a row.” Then she closed the briefing: “Thanks. See you tomorrow, guys.” [1]

“That’s Bidenomics”

Earlier, a reporter asked about a new car-charging venture. “A group of automakers, including GM, are forming a new EV charging company to challenge Tesla. I’m just curious if the White House has any reaction to that or if you played any part in helping them get that launched.” [1]

“That’s Bidenomics. Bidenomics is working and is in action. And because of this President’s policies, you have these seven major automakers coming together to install, I think, 30,000 high-powered EV charging stations,” Jean-Pierre said [1].

“Any antitrust concerns about multiple companies working together in that fashion?” the reporter asked. “So, look, I — I don’t have any — any concerns to lay out t- — for you today,” she said. “Again, this is Bidenomics in action.” [1]

“The Extreme Health [Heat]”

A reporter asked about a push from the left. “I wanted to know if you have any updates on if President Biden is willing to declare a climate emergency. There’s been more push from progressive lawmakers and activists for him to do that.” [1]

“So, I don’t have anything new to share there. As you know, you know, the President has the most aggressive and ambitious climate agenda since day one, as I mentioned at the top, as we’re — as he’s going to talk about the extreme health [heat],” Jean-Pierre said. The bracketed word is the White House’s correction [1].

“Is that still on the table?” the reporter asked. “I just don’t have any additional actions to preview at this time,” she said [1].

”They Made a Mistake”

On a federal judge in California blocking the administration’s asylum rule, Jean-Pierre said: “So, look, right now the way that we see the ruling is nothing has changed. The — the — we think that — we think that they made a mistake, but nothing has changed.” [1]

By the Numbers

22 years: how long since rates were this high, per the reporter’s question [1].
5.25% to 5.5%: the Fed’s new target range [2].
2.77%: the average 30-year mortgage rate the week Biden took office in January 2021 [4].
6.81%: the average 30-year rate in the survey released the next day [4].
30,000: EV chargers Jean-Pierre said the automakers would install [1].

What Happened Next

Mortgage rates kept climbing. By Oct. 26, 2023, the average 30-year fixed rate hit 7.79%, the highest in Freddie Mac’s weekly survey since 2000 [4].

The cut came before the election. The Fed held rates at that level for more than a year. On Sept. 18, 2024, seven weeks before Election Day, “the Committee decided to lower the target range for the federal funds rate by 1/2 percentage point to 4-3/4 to 5 percent.” One governor dissented: “Voting against this action was Michelle W. Bowman, who preferred to lower the target range for the federal funds rate by 1/4 percentage point at this meeting.” [3]

For Jean-Pierre on Hunter Biden’s art buyer at the same briefing, see HYGO News’ page on July 26, 2023. For her “Bidenomics at work” pitch a week earlier, see the page on July 19, 2023.