‘Critical’ for US Fed to stay independent of politics, says top central bank official
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US Federal Reserve governor Christopher Waller said he backed an interest rate cut later in September.
PHOTO: REUTERS
Follow topic:
- Fed governor Waller affirmed the US Federal Reserve's independence from political interference, despite concerns.
- Waller, a Trump appointee, anticipates slower economic growth due to tariff impacts, supporting an interest rate cut.
- He avoided commenting on Trump's attempts to remove Biden appointee Lisa Cook, emphasising an "unpolitical fashion."
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WASHINGTON – A top Federal Reserve official said on Sept 3 the US central bank has stayed independent of political interference and insisted it would remain so.
“The independence of the Fed is critical for everything we do, and you know there are things that are going on that make people worried, but I still believe that we have an independent Fed,” Fed governor Christopher Waller told CNBC.
Appointees to the Fed will “act in an unpolitical fashion”, Mr Waller said.
“So I think no matter what, the Fed will maintain its independence.”
Mr Waller was nominated by Mr Donald Trump in the US President’s first term and has been mentioned as a possible successor when chairman Jerome Powell’s term ends next spring.
Since returning to the White House in January, Mr Trump has relentlessly pushed for interest rate cuts, regularly lambasting Mr Powell
Mr Waller was one of two Fed officials to dissent from the Fed’s July decision to keep interest rates unchanged.
The other dissenter, governor Michelle Bowman, was also appointed by Mr Trump.
Mr Waller declined to comment on Mr Trump’s attempt to fire fellow Fed governor Lisa Cook, who was appointed by former president Joe Biden.
Mr Trump has alleged that Dr Cook committed mortgage fraud,
The matter is now being litigated in a US court.
Mr Waller said on Sept 3 he backed an interest rate cut later this month, reiterating that he views the weakening job market as the prime concern right now and that inflation from Mr Trump’s tariffs would be short-lived.
Mr Waller predicted the economy would weaken, but he does not expect a recession.
“I do see slower growth through the year, mainly because of the tariff impacts,” he said.
“I mean, tariffs are a tax and taxes are never typically good for growth.” AFP
