Fed Hikes 75 Basis Points Mid-Briefing. Jean-Pierre: 'This Happens to Me All the Time Up Here' (November 2, 2022)

Six days before the 2022 midterms, the Federal Reserve hit American borrowers with another big rate hike, and the news broke in the middle of the White House briefing. “Karine, the news just broke. The Fed did raise rates by the 75 basis points. Just following up to see if you did want to share anything now that the news is out. (Laughter.)” a reporter she called JJ asked on Nov. 2, 2022 [1].

“This happens to me all the time up here,” Press Secretary Karine Jean-Pierre said, according to the official White House transcript [1].

Then she said rising mortgage rates would help. “The Fed actions helped bring inflation down. And as mortgage rates increase, demand in the housing market should continue to cool and inventory should increase, which should have the effect of lowering housing inflation,” Jean-Pierre said [1].

“This is part of our transition — this is part of our transition to stable and more — a stable and steady growth, as you hear us speak about from our economic team and from — also from myself and from the President,” she said. “This is the kind of economy that delivers for working families. And that’s how we see the work of the Fed.” [1]

The Fed’s 2:00 p.m. statement said “the Committee decided to raise the target range for the federal funds rate to 3-3/4 to 4 percent.” It warned of more to come: “The Committee anticipates that ongoing increases in the target range will be appropriate.” [2]

The video above shows the exchange at the Nov. 2, 2022, briefing. Quotes are from the official White House transcript and the Federal Reserve’s statements [1][2][3].

”As Mortgage Rates Increase”

Home buyers already felt it. The average 30-year fixed mortgage rate was 2.77% the week President Joe Biden took office, according to Freddie Mac’s weekly survey. It hit 7.08% on Oct. 27, 2022, the highest since 2002, and was 6.95% in the survey released the day after Jean-Pierre’s comments [4].

Jean-Pierre did not take the question further. “And, again, stable — stable and steady growth with lower inflation,” she said. “I’m not going to go into any specifics — any more details from here.” [1]

“Gas Prices Have Come Down”

Jean-Pierre opened the briefing with a pitch on prices. “Now, President Biden has made it his top economic priority to lower costs for American families, and he has been delivering,” she said. “Gas prices have come down by $1.25 per gallon since June, and Medicare premiums are down as well.” [1]

They came down from a record. The national average for regular gasoline hit $5.006 a gallon the week of June 13, 2022, the highest in Energy Information Administration records going back to 1990. By Oct. 31, 2022, it was $3.742, still well above the $2.379 average the week Biden was sworn in [5].

She blamed Republicans for the pump. “They oppose the release of oil from reserves, which multiple industry analysts have said is helping bring prices down at the pump. They’re going to bat for Big Oil, even as they pad the pockets of shareholders and keep gas prices up for American families,” Jean-Pierre said [1].

”Put Our Economy at Risk”

A reporter asked about Biden’s warnings in Florida. “In his speech yesterday in Florida, the President suggested that shutdowns and default are likely outcomes if the Republicans take control of the House of Representatives, if he doesn’t agree with their demands on Social Security and Medicare. To what extent should Americans be braced for those outcomes?” [1]

“I mean, the President is saying that because Republicans are saying that,” Jean-Pierre answered. “They’re going to put it into a spiral downturn. That’s what they said they’re going to do.” [1]

A reporter she called Steve asked whether Washington could work if Republicans won. “Does the President believe that if the country chooses divided government next week and gives Republicans control of the House that the federal government can operate efficiently and effectively while he’s still President?” [1]

“So, look, I don’t want to get into hypotheticals. I know you’re — you want me to answer to a potential result that we might see next week, so I want to be very careful here,” she said [1].

”Is That a Yes to a Press Conference?”

A reporter she called Tam, the president of the White House Correspondents’ Association, noted that “every President since Bill Clinton has, immediately after the midterm election, held a lengthy press conference” and asked if Biden would “break with this tradition.” [1]

“I’m sure the President will take your questions like he does almost every day, and that we will address the elections a day after Election Day,” Jean-Pierre said. “So is that a yes to a press conference?” the reporter asked. “(Laughs.) I — you know, I’m sure that the President, again, will — will make his voice very clear the day after Election Day, and I’ll leave it there.” [1]

By the Numbers

75 basis points: the Fed’s hike that day [1].
3.75% to 4%: the new federal funds target range [2].
7.08%: the 30-year mortgage rate on Oct. 27, 2022 [4].
$5.006: the record weekly gas price in June 2022 [5].
222-213: the Republican House majority that took over in January 2023 [6].

What Happened Next

Republicans won the House. The 118th Congress opened in 2023 with 222 Republicans and 213 Democrats, according to the House historian [6].

Biden held the press conference. On Nov. 9, 2022, a reporter told him 75 percent of voters said the country was heading in the wrong direction and asked what he would do differently. “Nothing, because they’re just finding out what we’re doing,” Biden said. “So I’m not going to change anything in any fundamental way.” [7]

The hikes kept coming. By July 26, 2023, the Fed had raised its target range “to 5-1/4 to 5-1/2 percent” [3]. Mortgage rates peaked at 7.79% on Oct. 26, 2023 [4]. For Jean-Pierre’s no-comment on that hike, see HYGO News’ page on July 26, 2023. For the same briefing’s “ridiculous question” exchange, see the page on Nov. 2, 2022.