US Federal Reserve Chair Jerome Powell has firmly responded to Donald Trump’s recent call for cutting interest rates, stating that the central bank’s decisions will remain rooted in objective, apolitical analysis. His comments come as speculation grows around political pressure on the Fed ahead of the upcoming presidential elections.
Speaking at a banking event, Powell emphasized that the Fed does not consider political agendas when shaping monetary policy. “We make our decisions based on data and economic conditions, not politics,” he said. “It’s critical to our credibility.”
Trump, who has often criticized the Fed’s stance on interest rates, recently demanded aggressive rate cuts to boost economic momentum. However, Powell’s statement makes it clear that the central bank is not swayed by political noise.
The Fed has maintained a cautious stance despite calls for lower rates, focusing instead on controlling inflation and maintaining economic stability. Analysts believe this strong response from Powell signals the Fed’s intent to stay independent regardless of external pressure.
With markets closely watching both economic signals and political rhetoric, Powell’s message reinforces the Federal Reserve’s commitment to staying above the fray, at least for now.
