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Harris says Fed is independent and she would never interfere in its decisions
Harris's view contrasts sharply with that of the Republican nominee, former President Donald Trump
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Democratic presidential candidate Vice President Kamala Harris gives remarks at the Sheraton hotel, in Phoenix, U.S., August 10, 2024. / Julia Nikhinson/Pool via REUTERS
PHOENIX (Reuters) -U.S. Vice President Kamala Harris said on Aug.10 that the Federal Reserve is independent and would never interfere in its decisions if she wins the Nov. 5 presidential election.
"The Fed is an independent entity and as president, I would never interfere in the decisions that the Fed makes," Harris told reporters in Phoenix, Arizona.
Harris's view contrasts sharply with that of the Republican nominee, former President Donald Trump, who on Aug.8 said that U.S. presidents should have a say over decisions made by the Federal Reserve, the U.S. central bank.
Harris, speaking to reporters before boarding a flight to Las Vegas for a campaign event, said she disagreed strongly with Trump's position on the issue.
Harris, who officially became the Democratic Party's presidential nominee earlier this week, said she planned to unveil her policy positions next week, focusing on the U.S. economy.
"It'll be focused on the economy and what we need to do to bring down costs, and also strengthen the economy overall," she said.
A jump in the July U.S. unemployment rate reported last week helped spark a global stock market rout that continued into Aug.5 before equities partially recovered, with investors worried the U.S. was headed for a recession and the Fed would need to react aggressively.
Asked about those concerns and the Fed's response, Harris said, "As we know there was turbulence this week, but it seems to have settled itself. And we'll see what ... decisions they make next."
Trump's comments on Aug.8 offered the most explicit indication so far of his interest in infringing on the Federal Reserve's independence should he regain the White House.
"I feel the president should have at least (a) say in there" on Fed decisions, Trump told reporters at his Mar-a-Lago residence in Florida.
His comment follows a report this spring that Trump allies have drafted proposals that would attempt to erode the Fed's independence if he wins.
While the Trump campaign distanced itself from the Wall Street Journal report at the time, his remarks on Aug.8 indicate he is squarely aligned with one of the proposals' main thrusts: If he becomes president, Trump should be consulted on interest rate decisions, and Fed banking regulation proposals should be subject to White House review.
Current Fed Chair Jerome Powell, who was appointed by Trump and reappointed by President Joe Biden, is due to serve until May 2026.
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