Off The Wire
Powell: Fed's 'significant' political protection makes public outreach an 'obligation'
WASHINGTON (Reuters) - The “significant” protection the U.S. Federal Reserve has from short-term political pressures also gives it an obligation to “clearly explain” monetary policy, Federal Reserve chairman Jerome Powell said on Wednesday.
“Because Congress has granted the Federal Reserve significant protections from short-term political pressures, we have an obligation to clearly explain what we are doing and why. And we have an obligation to actively engage the people we serve so that they and their elected representatives can hold us accountable,” Powell said.
Speaking at a community listening event, Powell tied the Fed’s year-long series of such events to its standing as a politically independent organization - a status it has fought to ensure in the face of steady criticism from President Donald Trump.
Reporting by Howard Schneider; Editing by Andrea Ricci