Fed Chair says won’t response to Trump’s remarks, will continue work as usual

Jerome Powell, Federal Reserve Chair 

Federal Reserve Chair Jerome Powell said, on Wednesday, that he has not spoken to US President Donald Trump after he told business leaders that he would demand the central bank lower interest rates.

“I’m not going to make any response or comment whatsoever on what the president said. It’s not appropriate for me to do so,” he told a press conference following the Fed's decision to hold interest rates steady:

Powell said the public should be confident that the Fed will continue to do its work as it has always done.

“We will focus on using our tools to achieve our goals and really keeping our heads down and doing our work.”

The personal consumption expenditure (PCE) inflation is expected to rise to 2.6% in December, he said, adding the core inflation rate stands at 2.8%.

“We do not need to be in a hurry to adjust our policy stance. The Central bank is committed to achieving a 2% inflation rate,” Powell said.

The inflation target is not subject to change, the chairman said, adding, “We want to see further progress in the inflation data to deliver the next rate cut.”

The last couple of inflation readings have suggested more positive readings.

The Fed has studied historical data and economic literature to understand the factors at play, Powell said, asserting that the true effects of tariffs remain unclear.