Harris Responds to Trump’s Fed Comments; Prepares Policy Plan

Vice President Kamala Harris on Saturday strongly disagreed with a proposal advanced this week by former President Donald Trump that U.S. presidents should have a say in the 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 entity, and as chair, I would never interfere in the decisions that the Fed makes.”

With just 87 days to go until the election, the vice president also told reporters that she is preparing to present a formal economic policy platform in the coming days.

“He will focus on the economy and what we need to do to reduce costs and strengthen the economy,” Harris said.

Harris’ comments drew a sharp contrast between her and Trump, who this week said the president should “have at least [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, in a lot of cases, people who work at the Federal Reserve or the president,” Trump said Thursday during a news conference at his Mar-a-Lago resort.

Harris also said on Saturday that she is watching the Fed’s next moves on interest rates.

“As we know, there has been a bit of turbulence this week. [in global markets]but it seems that the situation has been resolved, and we will see what happens [decisions] “They take it later,” he told reporters. Harris added that she learns about the Fed’s decisions “about the same time you do.”

At his Florida press conference, Trump also recalled the very public disagreements he had with Fed Chairman Jerome Powell, another Republican, when he was president. Especially when the board decided to raise interest rates.

“I used to have problems with him,” Trump said.

Powell has repeatedly stressed how important it is for the Fed to be fully independent, so that the central bank can fulfill its mission.

Free from political pressure, the Fed’s board can make decisions based solely on whether they serve the long-term interests of the U.S. economy, not whether they are approved by voters.

And while President Joe Biden has never sought to exert influence over the Federal Reserve Board one way or another, Powell occasionally faces public pressure.

After last week’s stock market turmoil, many investors have called on Powell to speed up the pace of interest rate cuts ahead of the bank’s widely expected cuts in September.

For his part, Powell says he wants to know whether the economy will hit the bank’s traditional 2% inflation target before he and his board decide to cut interest rates.