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President of the Federal Reserve New York John Williams emphasized the importance of the Central Bank’s independence as president Donald Trump It looks like control over the monetary policy.
In an interview with CNBC influential politician avoided comment directly Trump’s efforts on dismissing Governor Ford Lisa CookBut he noted the important economic role played by the Central Bank in maintaining a stable economy.
“Personally, I worked with Lisa Cook because she was a member of the Council of Heads, and she always brought integrity and commitment to the Central Bank’s mission,” Williams said during “Box for Squawk“Interview”. … We know from history that independent central banks can provide low inflation, economic and financial stability. “
During the first year of his second term, Trump repeatedly pushed to the traditional barrier that stood between Kvasi’s government Fed and influence from the White House and the Capitol hill.
The president is embarrassed by the Fed’s chair Jerom Powell And his compatriots do not reduce interest rates. Previously he has Sugbl with the idea of dismissal of Powell Before making the decision to take the Cook, which is facing allegations that she committed a mortgage before she became a board member.
Williams said the battle would have to play in the courts.
“The structure of the federal reserve system is such that it is designed to have independent decisions; longer decisions affect the economy over a long time, away from short-term political pressure,” he said. “I think it’s really important.”
As for the nearest policy direction, Williams stated that the Fed would probably reduce the rates, but it did not provide a schedule if it could happen. The markets strongly expect that the open market federal committee, where Williams is the vice -chairman and permanent voting member, to restore its orientation interest rate in September by holding a year for maintenance. The current Fed rate is 4.25% to 4.50%.
Williams said he generally considers the US economy as strong when it slows down a little, and called the labor market “solid”, a term that has recently been used by many of his colleagues.
“If everything will move the way I hope they do in terms of our maximum employment goals and price stability, then I think it will be appropriate to move interest rates over time,” he said. “But we must be managed data.”
Powell said last Friday that He expects the tariffs to leave Also, but also did not indicate the terms.
