Vosh: Monetary policy will be independent of political factors, and the Federal Reserve has lost its way

BlockBeats News, April 21 — Federal Reserve Chair Nominee Jerome Powell stated at his Senate confirmation hearing that he will make monetary policy decisions independently and will not be influenced by any advice or pressure from Trump. He emphasized that successfully maintaining low inflation is like “armor,” which can protect the Federal Reserve from criticism. Powell said that maintaining this independence “largely depends on the Federal Reserve,” meaning it must successfully achieve its goals and stay within the powers granted by Congress.

Powell stated, “I believe that even if government officials — the President, Senators, or Representatives — express their views on interest rates, the independence of monetary policy implementation will not be significantly threatened. Congress has tasked the Federal Reserve with ensuring price stability, with no excuses, ambiguity, debate, or suffering. Inflation is a choice, and the Federal Reserve must be responsible for it. Low inflation is the Fed’s shield.”

Powell said that the Federal Reserve has lost its direction, and independence is crucial and must be earned. After selling assets, they are willing to hold cash or Treasury bills.