US president Joe Biden and VP Kamala HarrisKamala Harris took a clear shot at Donald Trump on Saturday, straight-up rejecting his idea that U.S. presidents should have a say in the Federal Reserve’s decisions.
“I couldn’t … disagree more strongly,” Kamala told us from Arizona. She made it clear that if she becomes president, the Fed will remain independent. No meddling from the Oval.
Kamala’s economic plans
With the election just around the corner, Kamala’s getting ready to drop her own economic policy. She claims that she wants to address rising costs and strengthen the economy. In her words:
“It’ll be focused on the economy and what we need to do to bring down costs and also strengthen the economy.”
Trump had said that:
“I made a lot of money, I was very successful, and I think I have a better instinct than, in many cases, people that would be on the Federal Reserve or the chairman.”
Even with the recent chaos in global markets, Kamala’s confident the Fed will do its thing. She’s not stressing about what’s next.
“As we know there was some turbulence this week in global markets, but it seems to have settled itself, and we’ll see what decisions they make next,” she added.
Trump was reminiscing about how he used to go at it with Powell when the Fed raised interest rates. He’s always wanted more control, but Powell, like Kamala, believes the Fed should stay independent.
Powell’s whole thing is keeping politics out of the Fed’s decisions, focusing only on what’s best for the long-term health of the U.S. economy.
Joe Biden hasn’t tried to sway the Fed either, even though Powell occasionally catches heat from the public. After this week’s market rollercoaster, some investors are calling for quicker rate cuts.
Powell, though, is holding out until he’s sure the economy is on track to hit that 2% inflation target before making any cuts.
