John Williams stresses independence as Trump moves to shoot Lisa Cook star-news.press/wp

New York Federal Reserve, John Williams, stressed the importance of the central bank independence, as President Donald Trump is looking to control monetary policy.

In an interview with CNBC, the influential policy maker avoided directly on Trump’s efforts to shoot the Lisa Cook governor, but he noticed the important economic role that the central bank plays in maintaining a stable economy.

“Personally, I worked with Lisa Cook because she was a member of the Board of Governors, and she has always brought integrity and commitment to the mission of the central bank,” Williams said during an interview “Squawk Box”. “I think the independence of the central bank in the field of the Federal Reserve is very important … We know from history that independent central banks can provide a decrease in inflation and economic and financial stability.”

During the first year of his second term, Trump has repeatedly pushed against the traditional barrier that stood between the semi -governmental federal reserves and its impact from the White House and the Capitol Hill.

The President reprimanded the President of the Federal Reserve, Jerome Powell and his colleagues responsible for not reducing interest rates. Previously, he collected the idea of ​​Powell’s dismissal before he finally decided to confront Cook, who faces accusations that she had committed fraud on the mortgage before becoming a member of the Board of Directors.

Williams said the battle should play in the courts.

“The federal reserve structure is that it is designed for the presence of independent policy makers who make decisions; the longest decisions affect the economy in the long term, away from political pressure in the short term,” he said. “I think this is really important.”

Regarding the direction close to the policy, Williams said it is likely that the Federal Reserve Bank will reduce the rates, but it has not provided a schedule when it happened. Markets strongly expects that the Federal Open Market Committee will resume, as Williams is vice president and a permanent voting member, to reduce the standard interest rate in September after spending the year. The current Federal Reserve Fund is 4.25 % to 4.50 %.

Williams said that he generally looks at the American economy strongly if it slows down a little, and described the labor market as “solid”, a term that many of his colleagues also used recently.

“If things move the way I hope to do in terms of the maximum goals of our work and price stability, I think it will be appropriate to transfer interest rates over time.” “But we must be driven by data.”

Powell said last Friday that he expected interest rates also, but he also did not specify a time frame.