US Fed chief Jerome Powell says Wont resign, will be patient on rates
Trump has been a frequent and vocal critic of Powell and the Fed, blaming them for raising rates which he says pose a threat to his economic agenda -- an unprecedented public berating that breaks with recent norms. Asked at an economic conference in Atlanta if he would step down should Trump request his resignation, Powell said, No.
US Federal Reserve Chairman Jerome Powell tried to reassure financial markets on Friday that rising interest rates are not locked in, and reasserted the central bank's independence saying he will not step down even if President Donald Trump asks him to.
Trump has been a frequent and vocal critic of Powell and the Fed, blaming them for raising rates which he says pose a threat to his economic agenda -- an unprecedented public berating that breaks with recent norms. Asked at an economic conference in Atlanta if he would step down should Trump request his resignation, Powell said, "No."
He said he had not heard directly from Trump despite the president's many recent Twitter outbursts and Powell repeated that the institution remained outside political considerations.
"People should know the Fed has a very strong culture around non-political activity and we are committed to achieving the goals the law gives us in a completely non-political way based on the best thinking," Powell said.
US and global stock markets have tumbled in recent weeks and 2018 was Wall Street's worst year since the global financial crisis amid worries about the slowing world economy, trade tensions and rising interest rates.
But Powell once again stressed that the Fed had no "pre-set" plan for interest rates and would bide its time to see how the economy evolves.
He pointed the strong US economic data -- including a blockbuster jobs report for December -- but noted financial markets were worried about a slowdown in the US and Chinese economies.
Even the jump in wages in 2018 did not set off alarm bells for inflation, he said.
There is "no pre-set path for policy and particularly with the muted inflation themes coming in we will be patient as we see how the economy evolves," Powell said.
And the Fed is "prepared to adjust policy quickly and flexibly" to support the economy, he added.
"We're listening carefully...To the message that markets are sending and we'll be taking those downside risks into account as we make policy going forward."
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