Powell refutes claim that September rate cut is related to U.S. election

Odaily News U.S. Representative Mike Lawler asked Powell at a hearing on Wednesday: "Will a September rate cut (currently investors believe the probability is about 70%) be seen as a political act to try to change the campaign landscape before the November 5 election?" Powell refuted the above statement, saying that the Fed will make interest rate decisions "when necessary." "Our commitment is to make decisions when necessary based on data, upcoming data, changing prospects and the balance of risks, rather than considering other factors, including political factors. We have always done this, including in election years... Everything we do will be based on evidence. For us, it is inappropriate to consider the election cycle (when making interest rate decisions) anyway."