Powell Dismisses Trump’s Criticism of “Political” Fed as “Cheap Shot”

US Federal Reserve Chairman Jerome Powell forcefully rejected claims that politics influence the central bank’s decisions, amid escalating clashes with President Donald Trump over the Fed’s independence, The Guardian reported.

Powell has dismissed accusations of partisanship. (Photo by Daniel Torok, The White House Flickr) 

Trump, seeking greater control over the Fed, branded Powell “a very political guy” after he refused to meet White House demands for steep rate cuts.

The administration has moved to reshape the Fed’s board of governors, installing an ally and attempting to oust a Biden appointee over disputed allegations of mortgage fraud.

Speaking at an event in Rhode Island, Powell, who is usually measured in public remarks, dismissed accusations of partisanship.

“Many people don’t believe” the Fed bases its decisions solely on data, Powell said. “But the truth is, mostly people who are calling us political, it’s just a cheap shot.”

Powell did not mention Trump by name, but the president has emerged as the Fed’s fiercest critic since returning to office.