WASHINGTON — President Joe Biden emphasized the importance of the Federal Reserve's political independence during a wide-ranging speech Thursday.
"By the way, I've never once spoken to the chairman of the Fed since I became president," Biden said. "It'll do enormous damage to our economy if that independence is ever lost."
Biden did meet with Powell in the Oval Office in May 2022. But by stating that he has no contact with Powell, Biden sought to draw a line between himself and Republican candidate and former President Donald Trump, who frequently
Biden's speech at the Economic Club in Washington, D.C., comes
The timing of the cut is fortuitous for the Democratic Party, as it should ease economic pain right before what still looks to be a tight election between Trump and Vice President Kamala Harris in November. Democrats have struggled to gain the upper hand on the economic narrative, with higher prices persisting throughout Biden's presidency.
"The President has always respected the Federal Reserve's independence to bring down inflation," said White House chief of Staff Jeff Zients in a call with reporters before Biden's speech. "That's in stark contrast to his predecessor."
Trump reportedly suggested the rate cut could be politically motivated.
"I guess it shows the economy is very bad to cut it by that much, assuming they're not just playing politics,"
Powell nodded to the Fed independence dynamic during his press conference on Wednesday.
"We're not serving any politician, any political figure, any cause, any issue, nothing," Powell said. "It's just maximum employment and price stability on behalf of all Americans. It's a good institutional arrangement which has been good for the public. I hope and strongly believe it will continue."
The speech comes as the Harris campaign and Democratic policymakers more broadly seek to take credit for positive aspects of the economy, despite a
