A US Federal Reserve official indicated that more interest rate cuts may be on the way but stressed that the decision was not politically motivated.
Adriana Kugler, one of the seven members of the Federal Reserve’s board of directors, emphasized the central bank’s independence from political influence, describing it as essential for economic stability.
Kugler noted that the Federal Reserve operates separately from political forces to make decisions based solely on economic conditions.
Congress has only limited power to override the Fed’s actions, and even that power is rarely exercised and any changes to interest rates – whether increasing or lowering – are made in response to trends in consumer spending and saving.
In periods of economic volatility, such as when inflation is unstable, the Fed acts to help stabilize prices.
Fed Chairman Jerome Powell expressed confidence in the Fed’s approach, saying: “We remain confident that by appropriately recalibrating our policy stance, the strength of the economy and labor market can be maintained with inflation sustainably low to 2%.”
The Fed emphasized that its independence from political pressure is critical to ensuring public and business confidence in its ability to support economic stability.
