Powell: Fed's independence from politics is vital to its interest rate decisions

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Powell: Fed's independence from politics is vital to its interest rate decisions
U.S. NewsChristopher WallerDonald Trump
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Chair Jerome Powell said the Federal Reserve’s ability to set interest rates free of political interference is necessary for it to make decisions to serve “all Americans” rather than a political party or a specific outcome.

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“I’m not concerned," he said, “that there’s some risk that that we would lose our statutory independence.” Yet the economy appears largely on track for such an outcome. The job market has slowed. And inflation is down sharply, though in recent months it has remained stuck modestly above the Fed's target, which could make the policymakers reluctant to cut rates much further.

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