Federal Reserve Chairman Jerome Powell (left) meets with President Joe Biden in the Oval Office on May 31, 2022.
Saul Loeb | AFP | Getty Images
President Joe Biden said Thursday that he has “never spoken” to Federal Reserve Chairman Jerome Powell during his presidency.
However, photos and videos of the meeting show that the two discussed inflation in the Oval Office on May 31, 2022, alongside Treasury Secretary Janet Yellen.
The president made the inaccurate assertion during a speech to the Economic Club of Washington, D.C., the day after the Federal Reserve announced its decision to cut interest rates by 50 basis points.
Biden stressed that he respected the independence of the central bank, saying, “By the way, I’ve never spoken to the Fed chairman since I became president.”
He was questioned about his apparently inaccurate recollection by a reporter at the White House on Thursday. Press ConferenceJared Bernstein, chairman of the Council of Economic Advisers, said Biden was only referring to the interest rate debate.
“The president has said he has not spoken to Chairman Powell about interest rates,” Bernstein said. “The president is not pressuring Chairman Powell and has never pressured him.”
But the error undermined Biden’s criticism of former Republican President Donald Trump, who had warned he would challenge the Federal Reserve’s independence if elected to a second term.
“Unlike my predecessor, I respect the Federal Reserve’s independence in pursuing its mission to control inflation, an independence that has served the country well,” Biden said Thursday.
“Loss of independence would also have a huge impact on our economy.”
When Biden met with Powell in the Oval Office in 2022, he also stressed the importance of the Fed’s independence in tackling inflation.
“My plan to address inflation starts with a simple proposal: Respect the Fed. Respect the Fed’s independence,” Biden said at the time. “My job as president will be not only to appoint very capable people to the Fed, but to give them the space they need to do their jobs.”
Republican presidential candidate Trump said in August that the president “at least [a] “What to say” about the Federal Reserve’s interest rate decision
“Yes, I feel very strongly about that,” Trump said at a news conference at Mar-a-Lago on August 8.
“In my case, I’ve made a lot of money, been very successful, and I think I have better instincts than the people who, in many cases, become members or chairs of the Federal Reserve.”
of The Wall Street Journal Earlier this year, it was reported that Trump’s advisers were putting together a plan to include him in the Fed’s interest rate-setting process if the Republican returns to the White House in January.
