Powell: Government Interest Costs Not Considered in Monetary Policy Decisions
According to Jinse Finance, Federal Reserve Chairman Jerome Powell stated on Wednesday that the Fed does not take government financing needs into account when formulating interest rate policy. At the press conference following the FOMC meeting, Powell emphasized that the Fed’s mission, as mandated by Congress, is to control inflation while maintaining a strong labor market to the greatest extent possible. He noted that given this statutory responsibility, "we do not consider the fiscal needs of the federal government. No central bank in a developed economy would do so," and such an approach would undermine the Fed’s credibility. Last year, the U.S. government’s interest expenses reached $1.1 trillion, with the cost of managing government debt more than doubling compared to pre-pandemic levels—largely due to the Fed maintaining high interest rates to curb inflation. Trump once claimed that a 3% rate cut would save the U.S. $1 trillion annually.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Data: If ETH breaks through $3,962, the total short liquidation volume on major CEXs will reach $2.311 billion
Clearpool Launches PayFi Pool and Stablecoin Yield Token cpUSD
Bitcoin financial services firm Fold partners with Blackhawk to launch its Bitcoin gift cards in the US
Zama Forms Strategic Partnership with Conduit to Expand Confidential Smart Contracts
Trending news
MoreCrypto prices
More








