US Vice President Kamala Harris on Saturday strongly contradicted former President Donald Trump's suggestion that US presidents must have a say within the US Federal Reserve's rate of interest decisions.
“I couldn't disagree more strongly,” Harris told reporters in Arizona, referring to the Republican presidential candidate's comments. “The Fed is an independent institution and as president I would never interfere in the Fed's decisions.”
With only 87 days left until the election, the Vice President also told the press that she is preparing to present an official economic policy program in the approaching days.
“The focus will be on the economy and what we need to do to reduce costs while strengthening the economy,” Harris said.
Harris' comments were a stark contrast to Trump, who said this week that the president should “at least [a] to have a say” in Fed policy.
“I think in my case, I've made a lot of money, I've been very successful, and I think I have better instincts than a lot of other people who are at the Federal Reserve or chair,” Trump said Thursday during a press conference at his Mar-a-Lago resort.
Harris also said Saturday that she is watching the Fed's next moves on rates of interest.
“As we know, there has been some turbulence this week [in global markets]but it seems to have settled down and we will see what [decisions] They make decisions next,” she told reporters. Harris added that she learns of the Fed's decisions “about the same time as you.”
At his press conference in Florida, Trump also recalled the public disagreements he had with Fed Chairman Jerome Powell, a fellow party member, during his presidency, particularly when the board decided to raise interest rates.
“I argued with him over and over again,” Trump said.
Powell has repeatedly stressed the importance of the Fed's complete independence in order that the central bank can fulfill its mission.
Without political pressure, the Fed's board could make its decisions based solely on whether or not they serve the long-term interests of the U.S. economy – not on whether voters approve of them.
And although President Joe Biden has not sought to influence the Federal Reserve Board a technique or one other, Powell occasionally faces public pressure.
After last week's tumult in stock markets, many investors called on Powell to chop rates of interest more quickly before the bank begins widely expected rate cuts in September.
Powell himself says he desires to make sure that the economy reaches the bank's traditional inflation goal of two percent before he and the board move on to cutting rates of interest.
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