Federal Reserve chair Jerome Powell has once again repeated his warning to the American government. Which is to not try and control the central bank.
His statement came as presidential candidate Donald Trump continues to criticize the Fed’s decisions, particularly its decisions on interest rates.
Responding to a question at the post-FOMC presser, Powell said the Fed operates based on economic data, not political pressures, and it’s going to stay that way.
Since his time in office, Trump has consistently tried to influence the Fed’s monetary policies. He truly believes that Powell’s decision to cut interest rates was nothing but a political move to boost opponent Kamala Harris’s chances in the election.
Trump’s feud with the Fed goes back years. During his presidency, he openly pressured Powell to cut rates, often lashing out when the central bank didn’t move fast enough for his liking.
He thinks Powell should have slashed rates more aggressively during his time in office, and he’s not backing down now.
Historically, the Fed operates independently of the White House to avoid political meddling, but Trump wants direct influence over the central bank. His goal? To make sure monetary policies align more closely with his vision for the economy.
