U.S. Rep. Patrick McHenry, R-N.C., speaks with members of the media outside the office of U.S. House Speaker Kevin McCarthy, California, at the U.S. Capitol in Washington on Oct. 3, 2023.
Mandel Ngan | AFP | Getty Images
Rep. Patrick McHenry, R-N.C., sharply criticized other politicians Tuesday for making public comments about what the Federal Reserve should do with its interest rate policy.
McHenry, the outgoing chairman of the House Financial Services Committee, said it was an “outrage” that some politicians were publicly lobbying the central bank on interest rate cuts.
“The outrage for me is… for example, if you’re on the right, you say the Fed should be independent, only now I think they should do that. And on the left, the same thing,” McHenry says. resign from Congress at the end of this term.
“Senators who try to steer the Fed on interest rate policy are actually debasing their role. … They demean their role as United States senators,” he added.
McHenry’s comments came a day before the US central bank is widely expected to cut interest rates for the first time since 2020. In the midst of a presidential election cycle, the Fed’s change in policy has fueled speculation about whether the central bank would do so. influenced by political considerations. Chairman Jerome Powell, first appointed by Trump and reappointed by President Joe Biden, has repeatedly denied this is a factor.
On Monday, Democratic Senators Elizabeth Warren of Massachusetts, John Hickenlooper of Colorado and Sheldon Whitehouse of Rhode Island called on the Fed to cut key interest rates. by 0.75 percentage pointswhich is higher than the most aggressive market expectations. Warren and Whitehouse are both running for re-election in November, while Hickenlooper’s term expires in 2026.
Republicans who have done their part include former President Trump, who said during a press conference in August that he believes he should have a say on monetary policy if he wins in November. Sen. Mike Lee, R-Utah, also introduced a bill earlier this year that would do that abolish the Fed.
When asked about Trump’s comments, McHenry said that “all presidents feel they should have input” but that central bankers should ignore statements from politicians.
“The Fed should act the way the data shows it should act. Period,” McHenry said.
The comments came at a conference hosted by Georgetown University’s Psaros Center for Financial Markets and Policy.