Federal Reserve Chair Jerome Powell rejected claims that the central bank allows politics to influence its policy decisions, calling such allegations “cheap shots.” Speaking at an event in Rhode Island, Powell emphasized that the Fed bases its actions on economic data, not political pressure. His comments come amid growing debate over the independence of the central bank.
The remarks follow criticism from some political leaders who have accused the Fed of ignoring calls for deeper interest rate cuts. Powell stressed that monetary policy decisions must carefully weigh both inflation and employment risks. He described the current economic situation as “challenging,” noting that near-term risks to inflation remain tilted upward while employment faces downside pressures.
Powell reaffirmed the Fed’s commitment to maintaining stability in the economy. His statement underscores the central bank’s stance that decisions are guided by objective economic conditions rather than political influence. The comments aim to reinforce confidence in the Fed’s independence amid ongoing scrutiny.
