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Powell refutes claims that the September rate cut is related to the US election

2024-07-11 05:27:44
US Rep. Mike Lawler asked Powell at Wednesday's hearing: "Would a rate cut in September (which investors currently see as about a 70% chance) be seen as a political act to try to change the campaign landscape ahead of the November 5 election?" Powell countered the claims, saying the Fed would make interest rate decisions "when necessary". "Our commitment is to make decisions when needed, based on data, upcoming data, the changing outlook and the balance of risks, rather than considering other factors, including politics. We do this all the time, including in election years... everything we do will be supported. It would not be appropriate for us to consider the election cycle [when making interest rate decisions] in any case."