WASHINGTON, May 2 (Reuters) - White House economist
Heather Boushey on Tuesday warned Republicans against "playing
games" with the U.S. economy through the debt ceiling debate at
a time when interest rate hikes were having a negative impact on
the banking sector.
"The economy remains, it's been strong. You don't want to be
pushing it off of the course that it's on," Boushey told
Reuters. "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?"
Boushey said Congress has the power to take the risk of
default off the table by raising the debt ceiling, while the
broader 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.
(Reporting by Andrea Shalal; Editing by Leslie Adler)
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