Powell Hearing Highlights: Denies Promising Rate Cuts to Trump, Blasts Fed for Losing Its Way, Called a "Puppet"

Odaily News Trump's pick for Fed Chair, Powell, went all out during his confirmation hearing: refusing to answer whether Trump lost the election, being angrily called a "puppet" by Warren; countering by blasting the Fed for "losing its way and playing politics"; and repeatedly denying promising low interest rates to the President. Nick Timiraos, often referred to as the "Fed's mouthpiece," wrote that Massachusetts Democratic Senator Elizabeth Warren, in her opening statement, characterized Powell as both Trump's "puppet" and an opportunist. Warren's argument was that a Fed Chair who wouldn't even dare state a simple fact that might displease the President who nominated him would not stand up to that President at critical moments. This theme ran throughout the hearing, with Democrats returning to it multiple times.

Powell also stated that the Fed needs "fundamental policy reform," including a new inflation framework, new tools, and new communication methods. While Powell sidestepped Trump's public attacks on the Fed, he repeatedly denied to senators from both parties that Trump had ever sought any promises on interest rates. "The President never asked me to pre-determine, promise, commit to, or decide on any interest rate decision, not in any of our discussions, and I would never agree to do so." (WSJ)