Government Interest Costs Not a Factor in Fed Rate Decision, Powell Says

The Fed chair said the mandate is keeping inflation under control and maximizing employment.

The Federal Reserve headquarters in Washington. Kevin Dietsch/Getty Images

Government financing doesn’t need to play a role in the Federal Reserve’s interest-rate decisions, Fed Chairman Jerome Powell said after the central bank held rates steady for the fifth meeting in a row.

President Donald Trump has repeatedly suggested that the Fed instead lower interest rates to make it cheaper for the government to service its debts. But Powell said on July 30 that this wasn’t the concern of the central bank.