Federal Reserve Chairman Jerome Powell declined to say Tuesday whether President Trump or other White House officials had “directly or indirectly” communicated with him regarding the central bank’s interest rate decisions.
“It’s probably not appropriate to discuss my private discussions with other government officials,” Powell said in Senate testimony. He said that he was “confident” the Fed would not take into account political considerations in setting monetary policy.
Powell and Federal Reserve Vice Chairman Richard Clarida dined with Trump and Treasury Sec. Steven Mnuchin earlier this month, following months of Trump publicly lobbying him, through interviews and tweets, to keep target interest rates low.
Recent presidents have avoided commenting on monetary policy to avoid the appearance that they are compromising the Fed’s independence. Trump’s comments have raised fears, including from Republicans Trump counts as allies on Capitol Hill, that he could undermine trust in the Fed’s stewardship of the economy.
Powell declined another Trump-related question Tuesday, on recent remarks made by his predecessor, Janet Yellen, that President Trump does not understand how the Fed, the economy, or trade work.
“I won’t have any comment on that for you senator,” said Powell, a Trump appointee. Sen. Sherrod Brown D-Ohio, the top Democrat on the Senate Banking Committee, asked the question.
