WASHINGTON—United States Senator Bill Hagerty (R-TN), a member of the Senate Banking Committee, today in a hearing questioned Federal Reserve Chairman Jerome Powell on his outlook for interest rates, the macroeconomic impact of the Biden Administration’s fiscal irresponsibility, and the political independence of the Federal Reserve. Hagerty stressed that the credibility of the Federal Reserve and the U.S. dollar depends on the Federal Reserve maintaining its commitment to making data-driven decisions that are free from political influence.
“We’re in an election year,” Hagerty said. “You’re getting a lot of pressure—I hear it from lawmakers—to adjust rates. I’m not telling you to raise rates or lower rates—but I’m just here to emphasize the fact that the credibility of the [Federal Reserve] depends on you remaining data driven. The credibility of our currency as the reserve currency of the world depends on that. I encourage you to continue to maintain that posture.”
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