MADRID Dec. 4 () –
The president of the United States Federal Reserve (Fed), Jerome Powell, stated this Wednesday that he does not fear for the independent nature of his organization despite past friction with President-elect Donald Trump, who will take office on January 20. 2025 for a second term.
“We are expected to achieve maximum employment and price stability for the benefit of all Americans while staying completely out of politics. I think there is very broad support for this position in both parties in Congress,” he said. assured Powell in a meeting organized by ‘The New York Times’.
Thus, Powell has indicated that he is “not concerned” about the possible loss of the Fed’s independence and has expressed hope that it will be possible to maintain a fluid relationship with the future Secretary of the Treasury, Scott Bessent.
“I hope that we maintain the same level of institutional relations, for example, with the Council of Economic Advisers, but, above all, with the Treasury Department,” he elaborated.
Likewise, the person responsible for the monetary policy of the world’s leading power has stated that the North American economy is doing “very well” and that “there are no reasons why it should not continue to be that way.”
Powell has indicated that this “good news” will allow the issuing institute to be “a little more cautious” when adjusting interest rates and trying to find the neutral level of the reference rate.
For his part, the ‘guardian of the dollar’ has described the trajectory that the US debt is following as “unsustainable” given the existing gap in income and expenses, although the current level of debt ‘per se’ would be manageable.
“We have very high budget deficits at a time of full employment and strong growth. We have to address this sooner or later, and better sooner than later,” he summarized. Even so, Powell has rejected that the deficit data should condition, at least for the moment, the Fed’s monetary action.
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