Washington, DC – Federal Reserve Chairman Jerome Powell spoke to the press at the Federal Open Market Committee (FOMC) meeting, reaffirming the central bank's decision to maintain current interest rates for the second consecutive month, despite increasing pressure from former President Donald Trump.
The Fed's stance reflects confidence in the strength of the U.S. economy, even as Trump has publicly called for interest rate cuts. However, Powell remains resolute, avoiding political interference and reinforcing the Fed's independence.
Powell declined to engage in Trump's criticisms
When directly asked if he discussed monetary policy with Trump, Powell firmly replied "No." He further emphasized that he had no intention of responding to the former president's statements, declaring that it would be "inappropriate" to engage in political discussions.
This statement comes amid rising tensions between the Fed and Trump, who has repeatedly criticized the central bank for not cutting interest rates, arguing that doing so would stimulate economic growth. However, Powell continues to defend the Fed's data-driven approach, reiterating that decisions are made based on economic indicators rather than political pressure.
The Fed's commitment to economic stability
Despite Trump's dissatisfaction, Powell remains confident in the current state of the U.S. economy, describing it as "in a very good position." He reiterated the central bank's commitment to ensuring monetary policy supports long-term economic stability.
While acknowledging that the Fed will adjust its policies in line with the broader economic goals of the administration, Powell made it clear that the central bank's actions would not be driven by political demands.
The decision to maintain interest rates reflects the Fed's cautious approach in balancing economic growth and inflation control. Investors and analysts will continue to monitor the Fed's future moves, especially as political pressure persists.
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