While Trump rubs off the Fed, Powell goes to Capitol Hill

SAN FRANCISCO (Reuters) – Federal Reserve Chairman Jerome Powell has intensified his contacts with US lawmakers over the summer. He reviewed his public calendars as President Donald Trump intensified his attacks on the Fed and Powell himself.

Powell had at least 33 one-on-one meetings with members of Congress in June, July and August, exceeding the 27 meetings he held during his first four months of work, monthly calendars published on the Fed's website. All in all, he has more than tripled the number of meetings with legislators in his first seven months compared to his predecessor, Janet Yellen.

Most of Powell's meetings in recent months have been held in person at Capitol Hill. During the two particularly intense days of mid-August, he met with seven members of the Senate Banking Committee and the House Finance Board to oversee the central bank.

Powell met a little more Republicans than Democrats, reflecting the general makeup of the Congress

The calendar does not say what was discussed, or who initiated the meetings, and a spokesman for the Fed declined to comment. However, Powell told Marketplace radio in June that he saw "walking in these rooms" in Congress to meet legislators, a significant part of his work.

Especially as Trump task forces have increasingly criticized the Fed and its interest rate hikes, which began under Yellen and continued under Powell, his successor appointed by Trump.

Trump made his first public comment highlighting his consternation on July 19, when he told CNBC that he was "not thrilled" with Fed rate hikes. In August, in an interview with Reuters, he asked the Fed to help him in his economy.

This month, he called the Fed "crazy" and threaten economic growth. On Tuesday, he told the Wall Street Journal that he regretted "maybe" having named Powell.

Orrin Hatch, Republican Chairman of the Senate Finance Committee, defended Powell on Wednesday, telling Bloomberg News: "I do not agree with everything they do, but they are still very good. people." Hatch is one of the members of Congress with whom Powell met.

At the same time, Powell and his colleagues continued to raise interest rates. It rarely happens a week without several Fed decision-makers making a public pronouncement on the need to raise rates while the unemployment rate is at its lowest level in 49 years and inflation close to the goal 2% of the Fed.

Congress asks the Fed to seek full employment and stable prices.

Cleveland Fed President Loretta Mester reiterated on Wednesday that Trump's public criticism did not affect political decisions.

Fed policymakers recognize that rising interest rates, even more than once, will likely slow the economy and increase unemployment, but it is a reasonable price to pay for inflation to stay under control.

"Everyone should be allowed to criticize us and ask us if we are doing the right thing," said Charles Evans, chairman of the Chicago Federal Reserve earlier this month. "And this is where the Fed President and the rest of us speak in public and explain why we have undertaken these actions, and hope people will understand it."