Federal Reserve Chairman Jay Powell is upbeat and positive about the morale of the central bank, despite President Donald Trump lashing out at him.
“Morale is very high, we’re very unified, we feel like we’re doing the best job we can serving the American people,” Powell said during a press conference on Wednesday afternoon, in response to a question about whether Trump’s criticisms were hurting Fed staff morale.
He spoke right after Trump tore into him, saying on Twitter that “Jay Powell and the Federal Reserve Fail Again. No ‘guts,’ no sense, no vision! A terrible communicator!”
Trump issued the criticism after Powell and the Fed announced Wednesday that short-term interest rates would be cut by a quarter of a point to a range between 1.75% and 2%. Trump has called for rates to be cut to zero.
Powell added later in the press conference that he would not change his practice of ignoring comments made by Trump and other politicians.
“I continue to believe the independence of the Federal Reserve from direct political control has served the public well over time and I assure you (that) my colleagues and I will continue to conduct monetary policy without regard to political considerations,” Powell said.
Fears of a potential economic recession have been on the rise due to changes in global markets and the escalation of Trump’s trade war with China.
Regarding the trade war, Powell said, “Trade policy’s not the business of the Fed.” But he added that “trade policy is something that’s weighing on the outlook of the economy.”
