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Powell, facing Trump press, warns of the danger of "short-term" political interests




Federal Reserve Mayor Jerome Powell seemed to take a subtle murder of President Trump during a speech in New York on Tuesday, warning of "short-term political pressure" that could harm the independence of the US Federal Reserve.

"Congress chose to isolate the Fed this way because it had seen the damage that often occurs when politics bends to short-term political interests," said Powell during a speech in the Foreign Relations Council. "Central banks in major democracies around the world have similar Independence. "

Powell's speech comes to the fore in last week's Federal Open Market Committee's two-day political meeting, where Trump urged the Fed to lower interest rates. However, decision-makers voted 9-1[ads1] to keep the federal funds benchmark stable at 2.25 percent to 2.5 percent, although it was evident that there could be a price fluctuation this year.

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The president went to Twitter on Monday to repeat his frustration with the US central bank , and Powell, whom he apparently considers shooting (in an interview with The Hill, Trump claimed he had the power to burn Powell, but said he had "no plans to do anything") )

"We are on course to have one of the best months in June in American history. Think about what it might have been if the Fed got it right, "Trump wrote." Thousands of points higher on Dow, and GDP in the 4 or 5 years. Now they hold themselves, like a stubborn child, when we need downfalls, and ease, to make up for what other countries do to us. Blow it! "

But Powell emphasized the importance of an independent central bank during the speech, which investors carefully watched for signals that the Fed could cut rates during its July meeting.

Nevertheless, Powell gave no additional evidence that a benchmark federal funds rate Reduction comes within the next six weeks, even though he said risks to Fed's economic prospects have grown.

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"The cross-currents have reemerged, with apparent progress on trade turning into greater uncertainty and with Incoming data collection raises concerns about the strength of the global economy, he says. "Our contacts in business and agriculture report increased concerns about trade developments."



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