Vice President Kamala Harris on Saturday strongly disagreed with former President Donald Trump’s recent suggestion that U.S. presidents should have influence over the Federal Reserve’s interest rate decisions.
“I couldn’t disagree more strongly,” Harris told reporters in Arizona, responding to the Republican presidential nominee’s remarks. “The Fed is an independent entity, and as president, I would never interfere in the decisions that the Fed makes.”
With just 87 days remaining until the election, Harris also announced that she is preparing to unveil an official economic policy platform in the coming days.
“It’ll be focused on the economy and what we need to do to bring down costs and also strengthen the economy,” Harris said.
Harris’ comments highlight a clear contrast with Trump, who stated this week that the president should “have at least [a] say” in Fed policy.
“I think that in my case, I made a lot of money, I was very successful, and I think I have a better instinct than, in many cases, people that would be on the Federal Reserve or the chairman,” Trump said Thursday during a press conference at his Mar-a-Lago resort.
Donald Trump tanked the toughest bipartisan border security bill in decades because he thought it would help him win an election.
When I am President, I will sign the bill. pic.twitter.com/Vlu4KdUdiI
— Kamala Harris (@KamalaHarris) August 10, 2024
Harris also mentioned that she is monitoring the Federal Reserve’s upcoming decisions on interest rates.
“As we know, there was some turbulence this week in global markets, but it seems to have settled itself, and we’ll see what decisions they make next,” she told reporters. Harris added that she learns about Fed decisions “about the same time you do.”
At his Florida press conference, Trump also recalled his very public disagreements with Fed Chair Jerome Powell during his presidency, particularly when the board decided to raise interest rates.
“I used to have it out with him,” Trump said.
Powell has consistently emphasized the importance of the Fed’s independence to fulfill its mission effectively.
Free from political pressure, the Fed can make decisions based solely on what benefits the U.S. economy’s long-term interests, without concern for voter approval.
While President Joe Biden has not attempted to influence the Federal Reserve Board, Powell occasionally faces pressure from the general public.
After the recent stock market volatility, many investors urged Powell to expedite interest rate cuts, ahead of the bank’s widely anticipated reductions expected in September.
Powell, however, has stated that he wants to ensure the economy meets the bank’s traditional 2% inflation target before he and the board decide to cut interest rates.
