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Cleveland Fed president: 'Politics doesn't enter the room' on policy decisions

Cleveland Fed president: 'Politics doesn't enter the room' on policy decisions
© Greg Nash

Loretta Mester, president and CEO of the Cleveland Federal Reserve, said that the policy decisions made by the country's central bank aren't influenced by political pressure.

“I can assure you, having gone to FOMC [Federal Open Market Committee] meetings for 20 years, that politics does not enter the room, that we really come in with the mandate that Congress has given us in terms of price stability and maximum employment,” Mester told CNBC Wednesday.

The executive's comments came after the Fed lowered interest rates by 50 basis points on Tuesday in an effort to offset the expected economic fallout caused by the coronavirus outbreak that has infected nearly 95,000 people worldwide. 

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President TrumpDonald TrumpTrump mocks Murkowski, Cheney election chances Race debate grips Congress US reentry to Paris agreement adds momentum to cities' sustainability efforts MORE, a frequent critic of the Fed's policies, took to Twitter to acknowledge the cuts but to also voice his displeasure on other Fed policies.

"The Federal Reserve is cutting but must further ease and, most importantly, come into line with other countries/competitors," Trump tweeted. 

"We are not playing on a level field. Not fair to USA. It is finally time for the Federal Reserve to LEAD. More easing and cutting!" he added.

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Mester said that policy decisions are made carefully after analyzing all sides of the equation.

“You can imagine that workers who aren’t able to work from home are going to be more affected by the shutdown in activity that we’re seeing already. There are things that you can do there,” she told the network's “Squawk Box Europe."

“Small businesses and medium-sized businesses who are less able to handle reduced activity for a time, there are things that can help from the fiscal side there,” she said.