Federal Reserve official says Central Bank is not influenced by politics
BIRMINGHAM, Ala. (WBRC) – A Federal Reserve official indicated that more interest rate cuts may be on the way but emphasized that the decision isn’t politically motivated.
Adriana Kugler, one of the seven members of the Fed’s governing board, reinforced the central bank’s independence from political influence, describing it as essential for a stable economy. Kugler noted that the Fed operates separately from political forces to make decisions based solely on economic conditions.
Only Congress has limited authority to override the Fed’s actions, and even this power is rarely exercised. Any changes to interest rates—whether an increase or a cut—are made in response to trends in consumer spending and saving.
In periods of economic volatility, such as when inflation is unstable, the Fed acts to help stabilize prices. Federal Reserve Chair Jerome Powell expressed confidence in the Fed’s approach, saying, “We continue to be confident that with an appropriate recalibration of our policy stance, strength in the economy and the labor market can be maintained with inflation moving sustainably down to two percent.”
The Federal Reserve maintains that its independence from political pressure is crucial to ensuring public and business confidence in its ability to support economic stability.
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