U.S. Vice President and Democratic presidential candidate Kamala Harris speaks to members of the media before boarding Air Force One at the Detroit Metropolitan Wayne County Airport in Romulus, Michigan, U.S., August 7, 2024.
Elizabeth Frantz Reuters
Vice President Kamala Harris on Saturday disagreed with former President Donald Trump’s suggestion this week that the US president should speak on the Federal Reserve’s interest rate decision.
“I couldn’t … disagree more strongly,” Harris told reporters in Arizona, referring to the Republican presidential nominee’s comments. “The Fed is an independent entity, and as president, I will not interfere with the decisions the Fed makes.”
Harris’ comments drew a stark contrast between him and Trump, who said this week that the president should “at least have (a) say” in Fed policy.
“I think that in my case, I’ve made a lot of money, I’ve been very successful, and I have better instincts than, in many cases, people who are going to be the Federal Reserve or the chairman,” Trump said Thursday. during a press conference at the Mar-a-Lago resort.
Harris also said Saturday that he is watching to see where the Fed moves next on interest rates.
“As we know, we have had some turmoil this week (in the global market), but it seems to have settled itself, and we will see what (decision) they make next,” he told reporters. Harris added that he learned of the Fed’s decision “about the same time.”
At the Florida press conference, Trump also recalled a public dispute he had with Fed Chairman Jerome Powell, a fellow Republican, during his presidency. Especially when the board decides to raise interest rates.
“I used to go out with him,” Trump said.
Powell has repeatedly emphasized the importance of the Fed being independent, so that the central bank can fulfill its mission.
Free from political pressure, the Fed Board can make decisions based solely on what serves the long-term interests of the U.S. economy — not whether voters approve.
And while President Joe Biden has not tried to influence the Federal Reserve Board in other ways, Powell has occasionally faced pressure from the general public.
After last week’s turmoil in the stock market, many investors are calling on Powell to cut interest rates more quickly, ahead of the expected bank cuts in September.
For his part, Powell said he wants to know if the economy will hit the bank’s traditional 2% inflation target before he and the board move to cut interest rates.
With only 87 days until the election, the vice president told reporters that he was ready to unveil his official economic policy platform in the coming days.
“It’s going to focus on the economy and what we need to do to reduce costs and also strengthen the economy,” Harris said.