White House backs criticism of Fed Chair Powell

Washington, Jan 13 The White House defended President Donald Trump’s repeated criticism of Federal Reserve Chairman Jerome Powell, while stressing that the Department of Justice will determine whether any legal issues exist.

Press Secretary Caroline Leavitt said the President has been clear in his assessment of Powell’s performance. “One thing for sure, the President's made it quite clear, is Jerome Powell is bad at his job,” Leavitt said.

She said Trump is entitled to express that view publicly.

“The President has every right to criticize the Fed chair. He has a First Amendment right, just like all of you do,” she said.

Asked whether the President directed the Justice Department to open an investigation into Powell, Leavitt responded bluntly.

“No,” she said.

Leavitt said any determination regarding potential criminality rests solely with law enforcement authorities.

“As for whether or not Jerome Powell is a criminal, that's an answer the Department of Justice is going to have to find out,” she said.

She added that the administration has not interfered with that process.

“It looks like they intend to find that out,” she said.

Leavitt also addressed questions about the Federal Reserve’s independence.

“He has and he said that many times,” she said, when asked whether the President believes the Fed should operate independently.

At the same time, she reiterated Trump’s position on interest rates.

“The President has made it quite clear, as have many economists, by the way, that interest rates should be lowered, and they should have been lowered a long time ago,” she said.

Leavitt declined to comment on Senate moves related to Federal Reserve nominees.

“I haven't spoken to the President about Senator Tillis comments,” she said.

The Federal Reserve operates independently of the White House, but tensions between presidents and Fed chairs are not uncommon during periods of high inflation or economic stress.

Interest rate policy remains a central issue for markets, consumers, and global investors, including those in emerging economies such as India.

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