TechFlow News, April 21: Jerome Powell, nominee for Federal Reserve Chair, stated at his Senate confirmation hearing that he would make monetary policy decisions independently, unaffected by any advice or pressure from President Trump. He emphasized that successfully maintaining low inflation acts like “armor,” shielding the Fed from criticism. Powell noted that preserving this independence “depends largely on the Fed itself”—namely, successfully achieving its objectives without exceeding the authority granted by Congress. Powell said: “I believe the operational independence of monetary policy is not especially threatened even when government officials—such as the President, Senators, or Representatives—express their views on interest rates. Congress has tasked the Fed with ensuring price stability; there can be no excuses, ambiguity, debate, or discomfort. Inflation is a choice—and the Fed must take responsibility for it. Low inflation is the Fed’s protective shield.”
Powell added that the Fed has lost its way, and its independence is critical—and must be earned. After selling assets, he is comfortable holding cash or Treasury bills. (Jin10)
