Fed Chair Jerome Powell says US elections will not sway rate decisions

The looming US presidential election will not influence the Federal Reserve's interest rate decisions, Fed Chair Jerome Powell said on Wednesday, adding that policymakers were "at peace" with keeping political considerations out of their decision-making process.

Powell, speaking in a news conference after the end of the US central bank's latest policy meeting, said Fed policy decisions will be guided by "what we think the right thing for the economy is," repeating a long-held stance of ignoring politics in the central bank's economic analysis.

"If you go down the road, where do you stop? And so we're not on that road," Powell said. "We're on the road where we're serving all the American people, and making our decisions based on the data and how those data affect the outlook and the balance of risks."

The issue of the Fed's independence jumped back into the spotlight last week when the Wall Street Journal reported that allies of former President Donald Trump are drafting proposals that would attempt to erode the central bank's independence and give Trump more influence over the Fed if he wins the Nov. 5 election.

When it comes to the election, "we're at peace over it, we know that we'll do what we think is the right thing, when we think it's the right thing" Powell told reporters.

Reuters