Powell says a potential September rate cut would be apolitical
Federal Chair Powell said a rate cut at the September meeting would be unrelated to the upcoming presidential election.
He said the central bank would be “absolutely” apolitical if it lowered borrowing costs at the meeting. But the Fed chief also cautioned against assuming that a cut was definitely happening.
“We never use our tools to support or oppose a political party, a politician or any political outcome,” Powell said.
He also said the central bank’s economic forecasts do not take into account who wins the presidency.
“We would never try to make policy decisions based on the outcome of an election that hasn’t happened yet,” Powell said. That would be “a line we would never cross.”
Powell noted November will mark his fourth presidential election at the Fed. He also emphasized that the central bank is a nonpolitical agency.