Powell Confident in Fed's Independence Under Trump, Cites Broad Support

Dec 4, 2024, 06:56 PM

Federal Reserve Chair Jerome Powell expressed confidence in the continued independence of the central bank during a speech at the New York Times DealBook Summit. Powell dismissed concerns about the Federal Reserve losing its autonomy under the incoming Trump administration, stating that there is broad support for an independent Fed across both political parties. He emphasized that the Fed's independence allows it to make decisions for all Americans, not for any political party. Powell also noted that the institutional relationships between the Fed and the Treasury would remain unchanged, expressing confidence in maintaining a similar relationship with Scott Bessent, the incoming Treasury Secretary, as he has had with previous ones. Additionally, Powell highlighted that the Fed's self-funded status is part of its independence, and he feels that the U.S. economy is in remarkably good shape. He also mentioned that the Fed is far from a situation of fiscal dominance, using its tools to achieve its mandate on inflation and jobs.