President Joe Biden insisted on Thursday that he hadn’t spoken with Federal Reserve Chairman Jerome Powell since being sworn-in.
‘And, by the way, I’ve never once spoken to the chairman of the Fed since I became president,’ the 81-year-old falsely claimed.
There are photographs of Powell with Biden and Treasury Secretary Janet Yellen in the Oval Office from 2022.
Biden made the dubious statement while discussing the Federal Reserve’s decision Wednesday to slash interest rates.
‘Yesterday was an important day for the country in my view,’ Biden said, noting the interest rate dip. ‘I think that’s good news for consumers and it means the cost of buying a home or car and so much more will be going down.’
‘And it’s good news, in my view, for the overall economy, because lower borrowing cost will support economic growth,’ Biden continued.
Asked about the claim at Thursday’s White House press briefing, United States Council of Economic Advisers Chair Jared Bernstein said that what Biden meant was that ‘he has not spoken to Chairman Powell about interest rates.’
‘Never has he pressured him,’ Bernstein added.
The Federal Reserve reduced its key rate by half a percentage point – a unusually large reduction.
Biden touted that it should continue to help with inflation.
The move annoyed MAGA-aligned Republicans who say it’s ‘election interference’ as it could give the Democratic nominee, Vice President Kamala Harris, a boost in November if Americans believe the economy is more sound.
Former President Donald Trump, the GOP nominee, claimed that the Fed is ‘playing politics.’
‘I guess it shows the economy is very bad, to cut it by that much, assuming they’re not just playing politics,’ he said at an event in New York. ‘The economy would be very bad, or they’re playing politics. But it was a big cut.’
Those statements likely motivated Biden to show there’s distance between the White House and the Federal Reserve.
During his remarks at the Economic Club of Washington, Biden insisted that the rate cut ‘doesn’t mean our work is done.’
‘Far from it, far from it,’ he said. ‘No one should confuse while I’m here. I’m not here to take a victory lap. I’m not here to say a job well done. I’m not here to say we don’t have a hell of a lot more to do. We do have more work to do.’
‘But what I am here to speak about is how far we’ve come, how we got here, and most importantly the foundation I believe we’ve built for a more prosperous and equitable future in America,’ the president continued.
‘So let’s be clear, the Fed lowering interest rates isn’t a declaration of victory, it’s a declaration of progress,’ he added. ‘It’s a signal we’ve entered a new phase of our economy in our recovery.’