Harris Responds to Trump's Fed Comments; Prepares for Economic Policy Plan

US Vice President Kamala Harris on Saturday strongly opposed former President Donald Trump's suggestion this week that US presidents should have a say in the Federal Reserve's interest rate decisions.

“I couldn't disagree more,” Harris told reporters in Arizona, referring to the Republican presidential candidate's comments. “The Fed is an independent entity, and as chairman, I will never interfere in the decisions that the Fed makes.”

With just 87 days to go until the election, the vice president told reporters she was preparing to unveil a formal economic policy platform in the coming days.

“The meeting will focus on the economy and what we need to do to cut costs and boost the economy as well,” Harris said.

Harris's comments drew a stark contrast with Trump, who said this week that the president should “get at least $100 million.” [a] “Says” in Fed policy.

“I think in my case, I've made a lot of money, I've been very successful, and I think I have better instincts than, in many cases, people who would be on the Fed or the chairman of the Fed,” Trump said Thursday during a news conference at his Mar-a-Lago resort.

Harris also said Saturday she was watching to see where the Fed moves next on interest rates.

As we know, there has been some turmoil this week. [in global markets]But it seems to have settled down, and we'll see what happens. [decisions] Harris added that she learns about the Fed's decisions “about the same time you do.”

At his press conference in Florida, Trump also recalled the public disagreements he had with Federal Reserve Chairman Jerome Powell, a fellow Republican, when he was president, especially when the Fed decided to raise interest rates.

“I've been talking to him a lot,” Trump said.

Powell has repeatedly stressed the importance of the Fed being fully independent, so that the central bank can accomplish its mission.

Regardless of political pressures, the Fed’s board can make its decisions based solely on whether they serve the long-term interests of the U.S. economy—not whether voters approve of them.

While President Joe Biden has not tried to exert influence over the Fed one way or another, Powell does occasionally face pressure from the public.

After last week's stock market turmoil, many investors have called on Powell to move more quickly toward cutting interest rates, ahead of widely expected cuts by the bank in September.

For his part, Powell said he wants to be sure the economy will reach the Fed's traditional 2% inflation target before he and the board move to cut interest rates.