US Vice-President Kamala Harris expressed her strong disagreement with Donald Trump's stance on the Federal Reserve during a Saturday statement, vowing to refrain from interfering with the central bank if she secures victory in the November 5 presidential election. Harris's perspective stands in stark contrast to that of her Republican opponent and former president, who advocated for presidential influence over the Fed's decisions on Thursday.
"The Fed operates as an independent body, and as president, I would not intervene in its decision-making process," Harris, the Democratic presidential candidate, stated to journalists in Phoenix, Arizona. Prior to departing for a campaign event in Las Vegas, Harris announced her intention to outline her policy stances in the coming week, emphasizing economic improvements and cost reductions.
The recent surge in the US unemployment rate for July, reported last week, precipitated a global stock market downturn that persisted until Monday, followed by a partial rebound. Investor anxiety over a possible US recession and the Fed's potential aggressive response played a significant role in the market volatility. Harris addressed these concerns, noting the recent market turbulence but observing that it appeared to have stabilized, with future Fed decisions yet to be seen.
Trump's remarks on Thursday provided the clearest evidence yet of his intent to undermine the Fed's autonomy if he returns to the White House. "I believe the president ought to have some input on Fed decisions," Trump declared to reporters at his Mar-a-Lago estate in Florida. His statement came after a Wall Street Journal article earlier this year revealed that Trump supporters had prepared plans to weaken the central bank's independence should he win the election. Despite the Trump campaign's disavowal of the report, his recent comments align closely with the core of those proposals, suggesting presidential consultation on interest rate decisions and White House scrutiny of Fed regulatory proposals.
Jerome Powell, the current Fed Chair appointed by Trump and reappointed by President Joe Biden, is set to remain in his position until May 2026. Trump frequently criticized and commented on the Fed during his presidency, deviating from the norm established by previous US presidents.
