U.S. Vice President and Democratic presidential candidate Kamala Harris speaks to members of the media before boarding Air Force Two at Detroit Metropolitan Wayne County Airport in Romulus, Michigan, U.S., August 7, 2024.
Elizabeth Frantz | Reuters
Vice president Kamala Harris on Saturday protested violently against the former President Donald Trump‘S This week’s recommendations that US presidents should have a say in the Federal Reserve’s interest rate 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 entity, and as chairman, I would never interfere with the decisions that the Fed makes.”
With just 87 days until the election, the vice president also told reporters that she is preparing to announce her formal economic policy platform in the coming days.
“It will focus on the economy and what we need to do to reduce costs and strengthen the economy,” Harris said.
Harris’s Comment created a stark contrast between her and Trump, who said this week that the president should “have at least [a] said” in Federal Reserve policy.
“I think in my case, I’ve made a lot of money, I’ve been very successful, and I think I have better intuition than, in many cases, the people who work at the Federal Reserve or the chairman,” Trump said Thursday during a news conference at his Mar-a-Lago resort.
Harris also said Saturday that she is watching the Fed’s next move on interest rates.
“As we know, this week has been a bit volatile. [in global markets]but it seems to have stabilized, and we will see what happens [decisions] they will make their next decision,” she told reporters. Harris added that she knows about the Fed’s decisions “at the same time you know.”
At a press conference in Florida, Trump also recalled public disagreements he has had with the Fed Chairman. Jerome Powella Republican, when he was president. Especially when the board decided to raise interest rates.
“I had an argument with him,” Trump said.
Powell has repeatedly stressed the importance of the Fed being fully independent so that the central bank can fulfill its mission.
Free from political pressure, the Fed board can make decisions based solely on whether they advance the long-term interests of the U.S. economy — not whether voters approve.
And while the President Joe Biden While he does not attempt to influence the Federal Reserve Board one way or another, Powell does sometimes face pressure from the public.
Following the stock market volatility of the past week, many investors have called on Powell to act more quickly to cut interest rates, ahead of the bank’s expected rate cut in September.
For his part, Powell said he wants to know how the economy will affect the bank’s traditional goals. 2% inflation target before he and the board moved to cut interest rates.
