(The Center Square) – Central bankers applauded Federal Reserve Chairman Jerome Powell on Tuesday when he ducked a question about how President Donald Trump’s criticism affects his work.
Powell, at an event in Portugal, was asked at a European Central Bank conference how Trump’s personal attacks have affected his work at the Federal Reserve.
“I’m very focused on just doing my job,” he said. “The things that matter are using our tools to achieve the goals that Congress has given us: Maximum employment, price stability, financial stability and that’s what we focus on. 100%”
Powell’s response drew applause from the audience and the other central bankers on stage with Powell – Governor of the Bank of Japan Kazuo Ueda, European Central Bank President Christine Lagarde, Governor of the Bank of Korea Rhee Chang-yong and Governor of the Bank of England Andrew Bailey.
Then the moderator asked Lagarde if she would do anything differently if she was in Powell’s position.
“I think I speak for myself but I speak for all colleagues on the panel, I think we would do exactly the same thing as our colleague Jay Powell does,” she said. “The same thing. Yep.”
Applause again followed.
Trump has ripped into Powell over the Federal Reserve’s decisions to keep interest rates steady this year. Trump has pushed Powell to lower rates, but Powell and the Federal Open Market Committee, which sets rates, have taken a wait-and-see approach. Powell has repeatedly dodged questions about Trump’s personal attacks and criticism and said the Fed will follow the data.
Trump has called Powell names – “numbskull” and “fool” – and said the chairman is “not a smart person.” Trump has also dubbed him “too late” for not cutting rates. The president has even suggested appointing himself chairman of the Federal Reserve. Trump has also called for aggressive cuts.
“Europe has had 10 cuts, we have had none,” Trump recently said. “We should be 2.5 Points lower.”
Over the weekend, Trump said the Fed Board of Governors was complicit.
“The Board just sits there and watches, so they are equally to blame. We should be paying 1% Interest, or better!” Trump said in his social media post.
On Monday, Trump sent a handwritten letter to Powell demanding ultra-low interest rates and again employing the “too late” moniker.
Trump knows he’s being “nasty” in his pressure campaign.
“I fully understand that my strong criticism of him makes it more difficult for him to do what he should be doing, lowering Rates, but I’ve tried it all different ways. I’ve been nice, I’ve been neutral, and I’ve been nasty, and nice and neutral didn’t work! He’s a dumb guy, and an obvious Trump Hater, who should have never been there,” Trump said.
The president has limited authority over the Federal Reserve, despite getting to nominate members.
The president nominates members to the seven-member Board of Governors of the Federal Reserve System. The Senate confirms nominees. Members serve 14-year terms with one term beginning every two years, on Feb. 1 of even-numbered years.
Trump nominated Powell as chair in 2017 and the U.S. Senate confirmed him in 2018. Former President Joe Biden reappointed Powell in 2022 to a second four-year term.
