Jay Powell defends the Federal Reserve Authority for US monetary policy

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Jay Powell defended the Federal Reserve Authority on American monetary policy, as he pledged to “focus on data” and avoid going into politics despite the calls of the White House and some legislators to reduce borrowing costs.

the feeding The most famous challenge to its independence is to determine interest rates since the 1980s, as Donald Trump got during his first week at the White House, which the monetary policy better understood than the central bank. Trump also said that borrowing costs should be less.

Federal Reserve Chair P. The legislators of the Senate Banking Committee told Tuesday that the central bank was a better opportunity to control prices if it remained above the battle – and it was in turn left to continue to determine interest rates free of political intervention.

“We will put a better policy, we will keep inflation less, if we focus only on doing our work, staying outside politics, and staying outside the elections, and we do not try to prefer any political party or harm any political party, or any political, and Powell said in his first appearance in front of the influential committee since Trump returned To the presidency, “Filters and just try to focus on data.”

Powell was determined that any decision from Trump to establish a member of the Federal Reserve Governor Council “was not permitted by law.”

The notes come because some Democrats are concerned that the Federal Reserve is actually responding to Republican pressure.

Democratic Senate members indicated in the hearing of the Federal Reserve plans to reconsider the rules on the alleged stress tests of the country’s largest banks, and the departure of the main supervisor Michael Bar from this role and its decision to quit the network for the vegetables of the financial system, such as evidence that he was surrendering to the Republican attacks.

However, Powell explained on Tuesday that when it comes to monetary policy, the Federal Reserve will not respond to pressure from the new administration and legislators on both sides of the corridor to reduce interest rates quickly.

The Federal Reserve Chair reiterated that strong growth meant that the price scales “are not in a hurry” to reduce borrowing costs less than its current level, which ranges between 4.25 percent and 4.5 percent.

In a hearing dominated by Democrats’ concerns about the Trump administration of the Consumer Protection Office and Republican allegations that many Americans who tend to the right are dismantled because of their political inclinations, Powell refused to rely on the economic consequences of the president may be procedures.

“It does not really remain to see the tariff policies that will be implemented. It will be unjust to predict when we do not really know. Powell said:“ We see proposals, but it is very difficult to say what will happen. ”It is in fact not just a tariff. It is definitions, immigration and financial policy. And organizational policy.

John Williams, Chairman of the Federal Reserve in New York, also indicated on Tuesday that the two prices will need to wait and know how economic conditions have evolved before determining whether the prices will be reduced.

While the borrowing costs are still “modestly restricted,” Williams said that the expectations “are very unconfirmed, especially on possible financial, trade, immigration and organizational policies.”