Kevin Wash, Chair of the U.S. Federal Reserve, stated that the central bank will uphold its independence even if President Donald Trump attempts to interfere with monetary policy.
According to reports from the Associated Press, Wash made these comments during a Senate Banking Committee hearing on July 15. He said, "President Trump has never tried to influence monetary policy," adding, "Even if such attempts occur, I will remain steadfast in my duties."
He emphasized, "The President and the Treasury Secretary have chosen individuals who will work independently, and I will continue to do so in the future."
Trump has repeatedly argued that the current interest rate, which stands at 3.50% to 3.75%, should be lowered by 1%. While Wash has reiterated his commitment to not exert direct influence since taking office, he continues to stress the need for interest rate reductions.
Wash noted that increased investment in artificial intelligence (AI) could temporarily raise prices but is unlikely to lead to sustained inflation. He acknowledged, "There is a possibility that price indicators may rise over the next 12 months," but clarified, "A one-time price increase does not necessarily indicate inflation," suggesting that supply increases may follow.
In response to recent warnings from some Fed officials about inflation risks, he remarked that these views may differ from his own, describing it as a "good-natured family dispute."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.