Fed is independent, U.S. official tells sceptical Berlin audience
The Federal Reserve remains independent from political interference, a senior U.S. Treasury official told a sceptical Berlin audience on Wednesday, a day after President Donald Trump renewed criticism of the bank's policy stance. The U.S. central bank, whose independence is viewed as key to economic stability, has been under pressure from Trump to cut interest rates amid his administration's shift towards protectionism and broader signs of potential economic weakness.
"The Fed Interest rate way to(o) high, added to ridiculous quantitative tightening. They don’t have a clue," Trump wrote in a tweet on Tuesday. Asked about Trump's comments during a panel discussion, U.S. Deputy Secretary of Treasury Justin Muzinich said there was no indication of tensions between the Fed and the White House.
"The president has his views, everyone on this panel has his views...," Muzinich said. "But the important point to emphasize is that, politically, the Fed's independence is not in question." "That's good to hear," said Andreas Dombret, a former member of the Executive Board of Germany's Bundesbank who had asked the question, drawing loud laughter and applause from the audience.
Fed policymakers could decide to cut rates in coming months given recent weak job and inflation data.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
ALSO READ
GRAPHIC-Markets grapple with shifting central bank rate cut bets
As world's central banks wrestle with when to cut rates, Europe signals it's ready to move
GLOBAL MARKETS-Stocks tumble, dollar firms amid geopolitical risk, mixed central bank views
Pakistan repays $1 bln in Eurobonds, says central bank
"BJP has left everyone behind in corruption...," RSSP chief Swami Prasad Maurya