Current:Home > ScamsFederal Reserve highlights its political independence as presidential campaign heats up -ProgressCapital
Federal Reserve highlights its political independence as presidential campaign heats up
View
Date:2025-04-13 01:35:52
WASHINGTON (AP) — The Federal Reserve is highlighting the importance of its political independence at a time when Donald Trump, who frequently attacked the Fed’s policymaking in the past, edges closer to formally becoming the Republican nominee for president again.
On Friday, the Fed released its twice-yearly report on its interest-rate policies, a typically dry document that primarily includes its analysis of job growth, inflation, interest rates and other economic trends. The report includes short text boxes that focus on often-technical issues such as monetary policy rules. The report is typically released the Friday before the Fed chair testifies to House and Senate committees as part of the central bank’s semi-annual report to Congress.
Many of the boxes appear regularly in every report, like one that focuses on employment and earnings for different demographic groups. Friday’s report, however, includes a new box titled, “Monetary policy independence, transparency, and accountability.” It is there that the Fed stressed the vital need for it to operate independent of political pressures.
“There is broad support for the principles underlying independent monetary policy,” the report says. “Operational independence of monetary policy has become an international norm, and economic research indicates that economic performance has tended to be better when central banks have such independence.”
Such statements suggest that the Fed is seeking to shore up support on Capitol Hill for its independence, which Chair Jerome Powell earlier this week mentioned as a crucial bulwark against political attacks on the Fed.
Before the pandemic struck in 2020, Trump, as president, repeatedly badgered the Fed to lower its benchmark interest rate, which can reduce the cost of consumer and business borrowing and stimulate the economy.
In 2018, as the Fed gradually raised its benchmark rate from ultra-low levels that had been put in place after the Great Recession, Trump, in a highly unusual attack from a sitting president, called the central bank “my biggest threat.”
And he said, regarding Powell, “I’m not happy with what he’s doing.”
Trump had nominated Powell as Fed chair, and President Joe Biden later re-nominated him to a term that will end in May 2026.
veryGood! (88148)
Related
- What to watch: O Jolie night
- Congress is revisiting UFOs: Here's what's happened since last hearing on extraterrestrials
- Dave Coulier Says He's OK If This Is the End Amid Stage 3 Non-Hodgkin’s Lymphoma Battle
- Exclusive Yankee Candle Sale: 50% Off Holiday Candles for a Limited Time
- The Daily Money: Spending more on holiday travel?
- Hurricane forecasters on alert: November storm could head for Florida
- Deion Sanders says he would prevent Shedeur Sanders from going to wrong team in NFL draft
- Nicole Kidman Reveals the Surprising Reason for Starring in NSFW Movie Babygirl
- $1 Frostys: Wendy's celebrates end of summer with sweet deal
- Louisiana mom arrested for making false kidnapping report after 'disagreement' with son
Ranking
- Paris Hilton, Nicole Richie return for an 'Encore,' reminisce about 'The Simple Life'
- Ryan Reynolds Makes Dream Come True for 9-Year-Old Fan Battling Cancer
- Kim Kardashian Says She's Raising Her and Kanye West's 4 Kids By Herself
- California researchers discover mysterious, gelatinous new sea slug
- Report: Lauri Markkanen signs 5-year, $238 million extension with Utah Jazz
- Quincy Jones' Cause of Death Revealed
- Disney Store's Black Friday Sale Just Started: Save an Extra 20% When You Shop Early
- Best fits for Corbin Burnes: 6 teams that could match up with Cy Young winner
Recommendation
Olympic men's basketball bracket: Results of the 5x5 tournament
US Diplomats Notch a Win on Climate Super Pollutants With Help From the Private Sector
Investigation into Chinese hacking reveals ‘broad and significant’ spying effort, FBI says
Amazon Black Friday 2024 sales event will start Nov. 21: See some of the deals
How effective is the Hyundai, Kia anti-theft software? New study offers insights.
Old Navy's Early Black Friday Deals Start at $1.97 -- Get Holiday-Ready Sweaters, Skirts, Puffers & More
Surfer Bethany Hamilton Makes Masked Singer Debut After 3-Year-Old Nephew’s Tragic Death
College Football Fix podcast addresses curious CFP rankings and previews Week 12