Federal Reserve Chair Jerome Powell stressed the importance of the central bank’s independence from politics in making interest rate decisions. During a speech at the New York Times’ DealBook summit, Powell stated that maintaining this independence is crucial to serving all Americans rather than a specific political party or outcome.
Powell expressed confidence in widespread support for the Fed’s independence among Congress members, despite President-elect Donald Trump’s public criticisms of the central bank and Powell himself. Trump had previously suggested having a “say” in the Fed’s interest rate policies as president.
However, Powell remained confident that the Fed can set interest rates cautiously due to the economy’s better performance than initially predicted. The Fed is aiming for a “soft landing,” reducing inflation to its 2% target without causing a recession.
Several Fed officials have expressed expectations of further rate cuts in the near future. Christopher Waller, a member of the Federal Reserve Board of Directors, and Mary Daly, president of the Federal Reserve Bank of San Francisco, both support lower rates, albeit without committing specific timelines.
Source: https://apnews.com/article/federal-reserve-powell-rates-inflation-trump-economy-44026b9bb0d5b8ec465d4a9dfcfd4741