Rep. Frank Lucas (R-Okla.) said he is exploring legislation that ensures that the Federal Reserve remains independent of political influence amid the Trump administration’s threat to Chairman Jerome Powell.
“The independent federal government is a very important institution and I personally believe that I settled it in 1913,” Lucas said. semafor During the World Economic Summit.
Lucas, who chairs the House Financial Services Task Force on Monetary Policy, Financial Market Resilience and Economic Prosperity, said he hopes to win bipartisan support for the task force’s legislative proposals.
“It’s not a government-owned bank. It’s owned by the bank. And yes, the president will nominate on the governor and the board’s Senate confirmation. But they are independent,” the lawmaker said in an interview with. Reuters.
Lucas praised Trump for telling him he had no intention of firing Powell, but said lawmakers are looking for opinions on how to further segregates quarantine the Federal Reserve from political winds.
“I think monetary policy is a force to stabilize by demonstrating that the president is not just this president, but the next two, three or ten or ten presidents, not just the president’s political game,” he added.
The Task Force will hold a third hearing on the structure and resilience of the financial market during the upcoming house sessions.
Democrats have long been worried that Trump will try to drive Powell away with a push to lower interest rates, and these fears were fueled earlier this week when Trump publicly blows up the Treasury Secretary, whom he originally appointed, in a true society.
“Many people are looking to “preemptively reduce interest rates.” There is virtually no inflation in the wake of lower energy costs, food prices (including Biden’s egg disaster!) being significantly lower, and most other “things” are falling,” Trump wrote. The true society on monday.
“These costs have dropped so well that there may be little inflation just what I predicted they would do, but there will be a slowdown in the economy unless we don’t go too late, major losers, lower interest rates,” the president continued.
The market quickly immersed, but then rebounded as Trump and Treasury Secretary Scott Bescent spoke more optimistic towards a final trade deal with China.
Trump also eased fears about his clash with Powell when he said Tuesday he had no intention of firing the Treasury Secretary.
“The press is running away with things. No, I’m not going to fire him. I hope he’s a little more aggressive in terms of his idea of lowering interest rates. This is the best time to cut interest rates,” Trump said.
Speaking to Reuters, lawmakers said the president’s pre-war tariffs rattled his Oklahoma members and compared the president to an old-fashioned horse trader.
“He’s piloting, he’s pulling, he’s pushing, he’s throwing a punch, he’s swinging,” he said.
“The stock market is stable, but the bond market has stabilized some stabilizations, but even so, nothing is certain there.”
