Powell in response to criticism reminded Trump of central bank independence

UNITED STATES, WASHINGTON (OBSERVATORY) — US Federal Reserve Chairman Jerome Powell, in response to new criticism from President Donald Trump, recalled the independence of the US central bank.

At a press conference, Powell, in response to a question about Trump’s criticism, declined to comment on the statements of “elected officials.”

“I continue to believe that the independence of the Fed from direct political control has worked well in the past. I assure you that my colleagues and I will continue to pursue monetary policy, not paying attention to political considerations,” Powell said.

Trump said earlier that the Fed “failed again” with today’s decision to cut the rate a bit. According to Trump, Powell has “no courage, no sense of reality, no vision of the situation.”

The US Federal Reserve System (FRS), following a meeting of September 17-18, lowered its base interest rate by 25 points on Wednesday to 1.75-2% from 2-2.25% per annum. The decision coincided with the forecasts of most analysts.

Trump has repeatedly criticized Powell and hinted that he could dismiss the head of the Fed, although lawyers disagree on whether the president has such powers. At the same time, Trump has the right not to extend Powell’s powers, although he entered the four-year term only in February 2018. Earlier, Trump called on the Fed to lower the base rate “to zero or lower.”


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