Biden has said the independence of the Fed is "critical" and "I never once spoke to the Chairman since I became President"

President touts progress on inflation and interest rates, but acknowledges ongoing work ahead

Following the Federal Reserve's interest rate cut, President Joe Biden emphasized the significance of the U.S. central bank's independence while criticizing Republican presidential candidate Donald Trump's expressed desire to exert more control over the Fed.

In a Thursday speech, Biden celebrated the rate cut but cautioned that efforts to combat inflation are ongoing, as his administration had pledged.

"Unlike my predecessor, I respect the independence of the Federal Reserve," Biden remarked at the Economic Club of Washington, D.C. "That independence has been crucial for the country. For the record, I haven’t spoken to the Fed chairman once since I took office. It would be catastrophic for the economy if that independence were compromised."

Last month, Trump said he would seek more influence over the Fed's decisions if re-elected, arguing that the central bank has "made a lot of mistakes." Some of Trump's allies have even suggested reducing the Fed's autonomy.

On the other hand, Democratic presidential nominee Kamala Harris believes the Fed should remain free from presidential influence, according to an aide last month. Harris took Biden’s place as the Democratic candidate after Biden exited the race in July.

Biden also noted that the Fed's rate cut on Wednesday was a "key indicator" that after numerous rate hikes to curb inflation, inflation has moderated. He added that the central bank is now lowering rates to help sustain economic growth.