Jerome Powell, the chairman of the US Federal Reserve, recently spoke at the New York Times DealBook Summit and expressed confidence in the central bank's ability to maintain its independence despite concerns about President-elect Donald Trump's potential influence.
Powell emphasized the safeguards in place to protect the Federal Reserve from political pressures. He stated that independence allows the Fed to focus on achieving maximum employment and price stability for all Americans.
Powell refrained from providing specific guidance on the Fed's near-term interest rate strategy but acknowledged the current economic climate allows for a cautious approach. He described the US economy as strong, which gives the Fed flexibility in making future rate adjustments.
Powell remains optimistic about bipartisan support in Congress for preserving the Fed's independence. He believes there is broad support for this idea in both political parties.
Powell's leadership will be crucial in ensuring the Fed remains focused on its dual mandate, and upcoming interest rate decisions will serve as a test for the Fed's independence.