The American central bank, the Fed, stepped up to the plate on Thursday to defend its independence from US President-elect Donald Trump. The Republican billionaire makes no secret of his desire to influence his decisions.
The Fed’s decisions “cannot be overturned by any other part of the government, except, of course, Congress,” Fed Chairman Jerome Powell said at a conference in Dallas, Texas.
The upcoming return of Donald Trump to the White House has raised fears about the Fed’s ability to resist political pressure. Donald Trump said in August that “the president should at least have a say.”
And when the institution began a first rate cut in September, a few weeks before the November 5 election, the then Republican candidate accused it of playing the game of the Democratic candidate.
“Until the end of my mandate”
“We don’t think, when we make our decisions, about the well-being of a political party or anything like that. We just look at the macroeconomic aspects and do the best we can,” assured Jerome Powell .
He also cited the “numerous research” carried out on the subject, which “shows that central banks which are independent […] other parts of the government, are doing a better job on inflation.
During his first term, Donald Trump broke with tradition and commented on the Fed’s decisions, even attacking its officials head-on, including Jerome Powell, whom he himself appointed to head the central bank, when rates weren’t falling fast enough for his liking.
Jerome Powell also reiterated that he did not intend to leave his post before the end of his mandate, in May 2026: “I will serve until the end of my term as president and that is all I have decided”.
One of Donald Trump’s close friends, Scott Bessent, whose name is being mentioned to become Treasury Secretary, has put on the table the hypothesis of a “shadow president” of the Fed, whose presence would aim to ensure that the real president of the institution no longer has any influence.
This article was automatically published. Sources: ats / afp
