Powell Refutes Claims that September Rate Cut is Related to U.S. Elections

U.S. Representative Mike Lawler asked Powell at a hearing on Wednesday, "Will the September rate cut (currently investors believe there is about a 70% chance) be seen as a political move to try to change the campaign landscape before the November 5th election?"

Powell rebutted this claim, stating that the Federal Reserve will make interest rate decisions "when necessary". "Our commitment is to make decisions based on data, upcoming data releases, constantly changing prospects and risk balance when needed, rather than considering other factors including political ones. We have always done so even in election years; everything we do has its basis. For us, considering an election cycle when making interest rate decisions is inappropriate anyway."