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.
Elisabeth Franz | Reuters
Vice President Kamala Harris on Saturday strongly rejected former President Donald Trump’s suggestion this week that the U.S. president 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 president, I will never interfere with decisions made by the Fed.”
Harris’ comments set up a stark contrast between her and Trump, who said this week that the president should “at least have (a) say” in Fed policy.
“I think in my case, I’ve made a lot of money, I’ve been very successful, and I think in a lot of situations I have better instincts than the people at the Fed or the chairman,” Trump said Thursday in his remarks. Press conference held at the manor.
Harris also said on Saturday that she was watching the Fed’s next move in interest rates.
“As far as we know, there was some turmoil (in global markets) this week, but it seems to have been resolved, and we will see what (decision) they make next,” she told reporters. Harris added that she learned about the Fed’s decision “around the same time.”
At a news conference in Florida, Trump also recalled his public disagreements with fellow Republican Fed Chairman Jerome Powell during his time as president. Especially when the board decides to raise interest rates.
“I’ve had issues with him,” Trump said.
Powell has repeatedly stressed the importance of the Fed’s complete independence for the central bank to fulfill its mission.
The Fed’s board of directors is not subject to political pressure and can make decisions based solely on whether decisions are in the long-term interest of the U.S. economy, rather than on voters’ approval.
While President Joe Biden has not sought to influence the Fed in one way or another, Powell has occasionally faced pressure from the public.
After last week’s turmoil in the stock market, many investors called on Powell to move faster to lower interest rates ahead of the bank’s widely expected rate cut in September.
Powell, for his part, said he wanted to know whether the economy would hit the bank’s traditional 2% inflation target before he and the board took action to cut interest rates.
With just 87 days left until the election, the vice president told reporters she is preparing to unveil her official 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.
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