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Jay Powell defended the powers of federal reserves over the US monetary policy, as he promised to “focus on the information” and avoid entering politics despite the calls of the White House and some legislators to reduce the costs of borrowing.
AND Fed He faces the strongest challenge of his independence to place interest rates since the 1980s, and Donald Trump claimed during his first week at the White House that he understood monetary policy better than the central bank. Trump also said that the cost of borrowing should be lower.
A nourished chair Powell On Tuesday, the legislators on the Senate Banking Committee said that the central bank was a better chance of holding the prices under control if it remained above the conflict – and in return to the left to continue with its job to set interest rates without political interference.
“We will make a better policy, we will keep the inflation lower, if we just focus on work and be out of politics, run out of choice and not try to favor or hurt any political party or make any political policy filter and just try to focus on data,” Powell said in his first appearance on the influential committee since Trump returned to the Presidency. “If we start setting political filters, we will be less effective in our already quite difficult work.”
Powell was unwavering that every decision of Trump was to release one of the seven members of the Fed Board of Directors “quite obviously not permitted under the law.”
The remarks come because some Democrats are concerned that the FED is already responding to Republican pressure.
Democratic senators cited the Fed plans for re -examining the rules of so -called stress tests for the largest banks in the country, the departure of his main supervisor Michael Barra from that role and his decision to leave the financial system’s greenery network as evidence that he succumbed to Republican attacks.
However, Powell made it clear on Tuesday that when it comes to monetary policy, the Fed will not respond to the pressure of a new administration and legislator on both sides of the passage to quickly reduce interest rates.
Fed President reiterated that strong growth means that the rates of “are not in a hurry” are set to reduce borrowing costs lower than the current level between 4.25 and 4.5 percent.
At the hearing that dominated the worries of Democrats over the crowds of Trump’s administration on the Consumer Protection Office and Republican claims that many Americans were applied to gums for their political preferences, Powell refused to attract what the economic consequences of the president of the President of the action may be.
“It really remains to be seen which tariff politics will be implemented. It would be unreasonable to guess when we really don’t know. We see suggestions, but it’s so hard to say what’s going to happen, “Powell said.” It’s not just tariffs. These are tariffs, immigration, fiscal policy and regulatory policy. We will try to understand it and do what is right for monetary policy. ”
Powell, however, promised to inform the Committee if the technological billionaire Elon Musk or other members of his so-called Government Efficiency Department (Doge) attempt to access the data or payments of the FED or other measures that would endanger the Operational Action of the Central Bank independence.
The Musk has so far focused its efforts on access to the US Treasury Payment system, not the Feds.
