Harris says the Federal Reserve is independent and she would never interfere in its decisions
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Democratic presidential candidate, US Vice-President Kamala Harris, told reporters on Aug 10 that she planned to unveil her policy positions next week.
PHOTO: REUTERS
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PHOENIX - US Vice-President Kamala Harris said on Aug 10 that the Federal Reserve is independent and she would never interfere in its decisions if she wins the Nov 5 presidential election.
“The Fed is an independent entity and as president, I would never interfere in the decisions that the Fed makes,” she told reporters in Phoenix, Arizona.
Her view contrasts sharply with that of the Republican nominee, former president Donald Trump, who on Aug 8 said that US presidents should have a say over decisions made by the Federal Reserve, the country’s central bank.
Ms Harris, who was speaking to reporters before boarding a flight to Las Vegas for a campaign event, said she disagreed strongly with Trump’s position on the issue.
Ms Harris, who officially became the Democratic Party’s presidential nominee recently, said she planned to unveil her policy positions next week, with a focus on the US economy.
“It’ll be focused on the economy and what we need to do to bring down costs, and also strengthen the economy overall,” she said.
A jump in the July US unemployment rate reported the week before helped spark a global stock market rout that continued into Aug 5 before equities partially recovered, with investors worried the US was headed for a recession and the Fed would need to react aggressively.
Asked about those concerns and the Fed’s response, Ms Harris said: “As we know, there was turbulence this week, but it seems to have settled itself. And we’ll see what... decisions they make next.”
Trump’s comments on Aug 8 offered the most explicit indication so far of his interest in infringing on the Federal Reserve’s independence should he regain the White House.
“I feel the president should have at least (a) say in there” on Fed decisions, he told reporters at his Mar-a-Lago residence in Florida.
His comment follows a report this spring that Trump allies have drafted proposals that would attempt to erode the Fed’s independence if he wins.
While the Trump campaign distanced itself from the Wall Street Journal report at the time, his remarks on Aug 8 indicate he is squarely aligned with one of the proposals’ main thrusts: If he becomes president, Trump should be consulted on interest rate decisions, and Fed banking regulation proposals should be subject to White House review.
Current Fed chair Jerome Powell, who was appointed by Trump and reappointed by President Joe Biden, is due to serve until May 2026. REUTERS
