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In a press conference Wednesday following the Federal Reserve\u2019s decision to hold interest rates steady, Chair Jerome Powell made clear his stance on the Fed\u2019s independence.\u00a0\u00a0<\/p>\n
\u201cWe haven\u2019t lost it. I don\u2019t believe we will. I certainly hope we won\u2019t,\u201d Powell said.\u00a0<\/p>\n
The comment comes several weeks after he made public the Justice Department\u2019s serving the Federal Reserve grand jury subpoenas targeting Powell over his June 2025 congressional testimony regarding the $2.5 billion renovation of the Fed\u2019s headquarters.<\/p>\n
The subpoenas are only half of the story. For months, President Donald Trump has lobbed attacks at the Fed\u2019s construction project, frustrated by what he perceives as a sluggishness in cutting rates. In the administration\u2019s view, the Fed is holding back the engine for growth. Last August, Trump posted on Truth Social: \u201cJerome \u2018Too Late\u2019 Powell, a stubborn MORON, must substantially lower interest rates, NOW. IF HE CONTINUES TO REFUSE, THE BOARD SHOULD ASSUME CONTROL.\u201d<\/p>\n
But Powell maintained the Fed has remained prudent on cuts, balancing the dual mandate of managing inflation and strengthening the job market.\u00a0<\/p>\n
\u201cWe at the Fed will continue to do our jobs with objectivity, integrity, and a deeper commitment to serve the American people,\u201d Powell said at Wednesday\u2019s press conference. The Fed has implemented 175 basis point cuts since September 2024.<\/p>\n
Aside from those comments, the Fed chair remained tight-lipped on other political issues, responding with a tepid, \u201cI have nothing for you on that\u201d to additional questions about the Fed\u2019s subpoena and the dollar\u2019s slump.<\/p>\n
The Fed held rates steady Wednesday at 3.50% to 3.75% as the central bank seeks to juggle the competing realities of the dollar\u2019s slump and the stock market\u2019s rally. The 10\u20132 vote to hold rates steady featured dissents from Governors Stephen Miran and\u2014a recent Trump appointee\u2014Christopher Waller. Both pushed for a quarter rate cut, aligning with the White House\u2019s demands.<\/p>\n
Beyond the political fray, Powell emphasized the Fed\u2019s cautious approach to further rate cuts, ensuring any future decision will be informed by a precise analysis of inflation data, much of which is currently skewed by trade policy, as Powell mentioned tariffs placed a \u201cone-time price increase\u201d on consumer goods.<\/p>\n
Powell\u2019s term as chair ends in May. And while it is not yet confirmed who will replace him, Trump has narrowed his search down to four contenders: Fed Governor Christopher Waller, National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh, and BlackRock chief investment officer Rick Rieder, who has surged on prediction markets in recent weeks to become the front-runner to succeed Powell.<\/p>\n
The Fed chair offered advice he\u2019d share with whoever becomes his successor: \u201cDon\u2019t get into elected politics.\u201d <\/p>\n<\/div>\n
#Jerome #Powell #Fed #independence #isnt #lost #certainly #hope #wont #lose<\/p>\n","protected":false},"excerpt":{"rendered":"
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