President Joe Biden insisted Thursday that he had not spoken with Federal Reserve Chairman Jerome Powell since he was sworn in.
“And by the way, I have never spoken to the chairman of the Federal Reserve 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 in 2022.
Biden made the dubious statement while discussing the Federal Reserve’s decision on Wednesday to cut interest rates.
“Yesterday was an important day for the country, in my view,” Biden said, noting the drop in interest rates. “I think it’s good news for consumers and it means that the cost of buying a home or a car and much else is going to come down.”
President Joe Biden falsely claimed Thursday that he had never spoken with Federal Reserve Chairman Jerome Powell while serving as chairman.
President Joe Biden (right) meets with Federal Reserve Chairman Jerome Powell (left) in the Oval Office on May 31, 2022
“And that’s good news, in my view, for the broader economy, because lower borrowing costs will support economic growth,” Biden continued.
Asked about the statement at Thursday’s White House news conference, U.S. Council of Economic Advisers Chairman Jared Bernstein said what Biden meant was that he “has not talked to Chairman Powell about interest rates.”
“He never put any pressure on him,” Bernstein added.
The Federal Reserve cut its key rate by half a percentage point, an unusually large reduction.
Biden touted that he should continue helping with inflation.
The move rankled MAGA-aligned Republicans, who say it amounts to “election interference” since it could give Democratic nominee Vice President Kamala Harris a boost in November if Americans believe the economy is stronger.
Former President Donald Trump, the Republican candidate, said the Federal Reserve is “playing politics.”
“I guess the big cut, assuming they’re not playing politics, shows that the economy is in very bad shape,” he said at an event in New York. “The economy would be very bad, or they would be playing politics, but it was a significant cut.”
Those remarks likely prompted Biden to show that there is 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.”
“Not at all,” he said. “No one should be confused while I’m here. I’m not here to take a lap of honour. I’m not here to say we’ve done a good job. I’m not here to say we don’t have a hell of a lot more to do. We have more work to do.”
“But what I’m here to talk 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.
“Let’s be clear: the Federal Reserve’s rate cut is not a declaration of victory, it’s a declaration of progress,” he added. “It’s a sign that we’ve entered a new phase of our economy’s recovery.”