BlockBeats News, April 21st – Federal Reserve Chair nominee Powell stated during his Senate confirmation hearing that he would make monetary policy decisions independently and would not be influenced by any advice or pressure from Trump. He emphasized that successfully maintaining a low inflation level is like wearing 「body armor,」 which can shield the Fed from criticism. Powell stated that maintaining this independence 「depends in large part on the Fed,」 meaning achieving its goals successfully and not exceeding the authority granted by Congress.
Powell stated, 「I believe that even if government officials – the President, Senators, or Congressmen – express their views on interest rates, the independence of monetary policy execution will not be under significant threat. The mission given to the Fed by Congress is to ensure price stability, with no excuses, ambiguity, debate, or anguish. Inflation is a choice, for which the Fed must be responsible. Low inflation is the Fed's shield.」
Powell stated that the Fed has lost its way, independence is crucial, and it must be won. Willing to hold cash or Treasury bonds after selling (assets).
