U.S. Vice President and Democratic presidential candidate Kamala Harris speaks to members of the media before boarding Air Force Two at Detroit Metropolitan Wayne County Airport in Romulus, Michigan, USA, August 7, 2024.
Elizabeth Frantz | Reuters
US Vice President Kamala Harris on Saturday strongly contradicted former President Donald Trump's suggestion that US presidents should have a say in the US Federal Reserve's interest rate decisions.
“I couldn't disagree more strongly,” Harris told reporters in Arizona, referring to the Republican presidential candidate's comments. “The Fed is an independent institution and as president I would never interfere in the Fed's decisions.”
With only 87 days left until the election, the Vice President also told the press that she is preparing to present an official economic policy program in the coming days.
“The focus will be on the economy and what we need to do to reduce costs while strengthening the economy,” Harris said.
Harris' comments presented a stark contrast between her and Trump, who said this week that the president should “at least [a] to have a say” in Fed policy.
“I think in my case, I've made a lot of money, I've been very successful, and I think I have better instincts than a lot of other people who are at the Federal Reserve or chair,” Trump said Thursday during a press conference at his Mar-a-Lago resort.
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Harris also said Saturday that she is watching the Fed's next moves on interest rates.
“As we know, there has been some turbulence this week [in global markets]but it seems to have settled down and we will see what [decisions] They make decisions next,” she told reporters. Harris added that she learns of the Fed's decisions “about the same time as you.”
At his press conference in Florida, Trump also recalled the public disagreements he had with Fed Chairman Jerome Powell, a fellow party member, during his presidency, particularly when the board decided to raise interest rates.
“I argued with him over and over again,” Trump said.
Powell has repeatedly stressed the importance of the Fed's complete independence so that the central bank can fulfill its mission.
Without political pressure, the Fed's board can make its decisions based solely on whether they serve the long-term interests of the U.S. economy – not on whether voters approve of them.
And although President Joe Biden has not sought to influence the Federal Reserve Board one way or another, Powell occasionally faces public pressure.
After last week's tumult in stock markets, many investors called on Powell to cut interest rates more quickly before the bank begins widely expected rate cuts in September.
Powell himself says he wants to make sure the economy reaches the bank's traditional inflation target of two percent before he and the board decide to cut interest rates.
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