As Trump showers fire on U.S. central bank, Powell Fed Chair builds GOP support

But while Trump has been able to rally Republicans to his cause on many issues, Powell appears to have successfully built a base of key backers on Capitol Hill. Top Republicans are supporting Powell, saying he is doing a good job in the face of withering Trump criticism.

"I believe that under Chairman Powell, the Fed is generally on the right track," said Rep. Jeb Hensarling (R-Tex.), Chair of the Financial Services Committee, which plays an important role for the Fed. "Chair Powell is the fourth Fed chair I've worked with. He's probably more forthcoming, more transparent and the most aggressive on making sure he has a healthy dialogue with key decision-makers on the Hill. "

Trump has upped its pace in the Fed's Fed. The policy, long telegraphed, aims to avoid overheating in the economy, which can lead to a recession.

If Trump was able to run the Fed, it could have sudden and unpredictable effects on the U.S. economy. Markets have long seen the independence of the central bank as a critical ingredient in stability, and Powell has vowed to uphold it.

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Trump appointed Powell, a Republican with history of reaching out, last year, replacing President Barack Obama's Fed chair, Janet L. Yellen. He was expected to continue Yellen's race of gradual interest rate hikes, a long process of normalization since the 2008 financial crisis.

Powell's first big challenge has a financial crisis but a unpredictable president.

Behind the Scenes, Powell has been increasing transparency for the bank and forging deep alliances with Congress, moves that have helped keep the Fed as it goes.

Powell's Outreach Strategy Begins Long Before Trump started blasting him over the summer. A few days before he was sworn in the Fed chair in early February, Powell traveled to the GOP 's House Financial Services Committee retreat in Maryland. GOP lawmakers recall the meeting

Republicans say Powell's predecessors, Yellen and Ben Bernanke, often gave long, professors-like answers to questions. They prefer Powell's "plain English" responses.

"I'm on my third Federal Reserve flesh. Chairman Powell has been the most accessible, most open Federal Reserve chair that I have seen, "said Rep. Steve Stivers (R-Ohio), a member of the House Financial Services Committee.

Powell has continued to wear out the carpets on Capitol Hill, making 60 one-on-one visits and calls with lawmakers of both parties, according to his public calendars from February to August (the latest available). Some say Powell is the easiest Fed chair to deal with Alan Greenspan, who was famed for his skill at navigating Washington's political scene.

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Many Republicans have bucked the president and voiced their support for Powell and the Fed's current plan. Orrin G. Hatch, Chair of the Senate Finance Committee, said Wednesday he thought Powell was doing a good job, adding that there are "pretty good people" at the Fed right now.

Even lawmakers close to Trump are not particularly bothered by Powell. "Obviously interest rates and [economic] "The House of Commons Freedom Caucus," said a member of the House Freedom Caucus, "which is very much in line with Trump on most issues, speaking on the condition of anonymity.

Still, Powell faces a tough balancing act in his outreach campaign.

"There's such a thing as spilling your gut too often to the end confusing people," say Fed Chair Paul Volcker said. "I do not think you're going to tell me about this."

Trump told The Wall Street Journal on Tuesday that he "maybe" regrets to Powell, who was a compromised choice for the job, according to which people were not allowed to speak publicly. Trump liked Yellen but felt he should have his own person in the job.

The shortlist of candidates was narrowed to Powell, a lawyer, and John Taylor, an economist beloved in traditional conservative circles.

As he was saying, "I like low interest rates, do not you?" And that he was supposed to be a Taylor.

The scales tipped to Powell after the Treasury Secretary Steven Mnuchin pushed hard for him, thinking he would be good for markets and regulatory reforms. Powell and Mnuchin meet frequently for breakfast and lunch, have their predecessors, and the secretary has continued to support the Fed and its independence.

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Democrats, who have been speaking in the past, are also largely backing the Fed flesh.

"I think Powell has been in a strong performance so far.He's no drama," said Sen. Mark R. Warner (D-Va.), A member of the Senate Banking Committee that oversees the Fed. "Trump is the king of "It does not matter what it's going to do."

Powell has made it a point to speak with the usual economic jargon when he interacts with lawmakers and the public. He has tried to appear at a general audience, not the Wall Street crowd.

Starting in January, Powell plans to hold a news conference after all eight meetings of the Fed's top policymakers. That's a first in the Fed's 104 year history.

Jay Powell knew that whatever the Fed did, they would get criticism from the president. He was ready for it, "said David Wessel, director of the Hutchins Center on Fiscal and Monetary Policy at Brookings. "He'll stand up to this. He'd rather be known as a Fed chairman who did a good job. "

Powell is also exploring the position of the central bank, according to the position of the public.

This would not be a Government Accountability Office audit of the Fed, including monetary policy decisions, that Sen. Rand Paul (R-Ky.) And other Fed critics have long called for. The approach is more likely to be along the lines of what the Bank of England and Bank of Canada do, but typically not their policy calls.

No decisions have been made, but Powell continues to look for ways to strengthen the public trust.

Trump's hand criticism is the Fed's interest rate increases will slow economic growth and cause some people to lose their jobs. Powell argues the economy is a normal rate – around 3 percent – that will not cause the economy to overheat. The Fed is a 2.25 percent, which is still low by historical standards.

"We are working hard to try to sustain the growth and keep unemployment and inflation right on target," said Powell said in his last appearance Oct. 3. effectively indefinitely. "

For now, the economy is showing a lot of strengths and weaknesses in the world. But that could change if the economy softens or if Powell does not go as far as they are.

Erica Werner contributed to this report.

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