Vice President Kamala Harris strongly refuted former President Donald Trump’s recent suggestion that presidents should influence the Federal Reserve’s interest rate decisions. Speaking in Arizona, Harris emphasized the importance of the Fed’s independence, affirming that she would never interfere with their decisions if elected president. She also announced plans to reveal an official economic policy platform soon, focusing on reducing costs and bolstering the economy. This stance starkly contrasts with Trump’s belief that presidents should have a say in Fed policy.
Harris revealed that she is closely monitoring the Fed’s next moves on interest rates, acknowledging the recent market turbulence but expressing confidence in the Fed’s ability to navigate such challenges. Trump, on the other hand, reminisced about his public disagreements with former Fed Chair Jerome Powell, emphasizing the importance of the Fed’s independence from political pressure. While President Joe Biden has refrained from influencing the Fed’s decisions, Powell faces occasional public pressure, especially following recent market fluctuations.
Powell has made it clear that the Fed’s decisions are based solely on the long-term interests of the U.S. economy, aiming to reach the 2% inflation target before considering further interest rate cuts. This reaffirms the Fed’s commitment to making decisions independently, free from external influences, to ensure economic stability.
Vocabulary List:
- Refute /rɪˈfjuːt/ (verb): To prove that a statement or theory is wrong or false.
- Turbulence /ˈtɜːrbjələns/ (noun): Violent or unsteady movement often used to describe instability in markets.
- Acknowledge /əkˈnɒlɪdʒ/ (verb): To recognize or admit the existence or truth of something.
- Bolster /ˈboʊlstər/ (verb): To support or strengthen.
- Independence /ˌɪndɪˈpɛndəns/ (noun): The state of being free from outside control.
- Fluctuation /ˌflʌktʃuˈeɪʃən/ (noun): An irregular rising and falling in number or amount; a variation.
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