The US Federal Reserve is cutting interest rates sharply. For Donald Trump, there can only be one reason for this. But Joe Biden also surprised everyone with a statement about Fed Chairman Jerome Powell.
Republican presidential candidate Donald Trump has described the US Federal Reserve’s decision to cut the key interest rate by half a percentage point as a “political move”.
“It’s really a political move. Most people thought it would be half that number, which probably would have been the right thing to do,” Trump said in an interview with the online portal “Newsmax.”
Donald Trump: US presidents should be able to interfere in Fed issues
On Wednesday, the US monetary authorities lowered the key interest rate for the first time since the beginning of the decade – and did so by half a percentage point. But Federal Reserve Chairman Jerome Powell made it clear that this was not “the new pace” on the interest rate path downwards.
In August, Trump demanded that the US President have a say in the decisions of the Federal Reserve. The Chairman of the US Federal Reserve and the other six members of the Board of Governors are appointed by the President and must be confirmed by the Senate. The Fed enjoys extensive operational independence in its decisions.
Biden also irritates with statement about central bank chief
US President Joe Biden, on the other hand, emphasized the independence of the central bank after the sharp interest rate cut – but also irritated with a statement about Fed Chairman Powell. The Fed’s independence has served the country well, said the Democrat in a speech on economic policy in the US capital Washington. “By the way, I have not spoken to the chairman of the Fed once since I became president.” The Democrat did speak to Powell during his term in office. For example, in 2022 he received the Fed chairman together with Treasury Secretary Janet Yellen at the White House to talk about the fight against high consumer prices.
When asked about Biden’s statement, his White House economic adviser Jared Bernstein said: “The President has said that he has not spoken to Chairman Powell about interest rates. He has not pressured Powell and never has.” When asked whether Biden had then made a mistake, Bernstein stressed that Biden had only referred to the issue of interest rates.
Powell told a congressional committee in July that he had not had any conversations or phone calls with Biden since their White House meeting in May 2022. He shook Biden’s hand at a state reception but did not speak to him, the Fed chief said.
Source: Stern
I have been working in the news industry for over 6 years, first as a reporter and now as an editor. I have covered politics extensively, and my work has appeared in major newspapers and online news outlets around the world. In addition to my writing, I also contribute regularly to 24 Hours World.
