WASHINGTON (Reuters) -U.S. President Joe Biden stated on Tuesday he has not spoken to Federal Reserve Chair Jerome Powell, noting the central financial institution is an impartial company.
“I think the Federal Reserve is an independent operation and starting off my presidency I want to be real clear that I’m not going to do the kinds of things that have been done in the last administration,” Biden advised reporters.
Biden nonetheless has important room to make his mark on the Fed. Powell’s time period is up subsequent February, when Biden can select to increase his appointment, and there may be an empty seat on the Fed’s Board of Governors.
Biden already withdrew former President Donald Trump’s nomination of Judy Shelton to fill that seat.
The Fed was designed to maintain a level of independence in setting rates of interest and different key insurance policies from politicians.
Trump clashed overtly with Powell, whom he appointed, threatening to fireplace him a number of instances for not retaining charges low sufficient. The Fed ultimately lowered charges close to zero p.c, the place it has saved them because the financial system weathered the COVID-19 pandemic.
Biden has carefully coordinated financial coverage with Treasury Secretary Janet Yellen, herself a former Fed chair and colleague of Powell’s. When requested about Powell, Biden talked about that he speaks repeatedly with Yellen.
Reporting By Trevor Hunnicutt and Jarrett Renshaw; Editing by Leslie Adler