Records show that Biden had, in fact, met with Powell as recently as May 2022. This meeting marked their third face-to-face interaction since Biden assumed the presidency and nominated Powell for a second term as chairman in November 2021.

Biden's Stance On Federal Reserve's Autonomy

“I’ve never once spoken to the chairman of the Fed since I became president,” Biden stated during the speech. The comment aimed to underline the administration's non-interference with the Federal Reserve, sharply contrasting with Trump's approach, which involved public outcries against the Fed's policies.

“Unlike my predecessor, I respect the Federal Reserve’s independence as they pursued a mandate to bring inflation down,” Biden elaborated. He praised the institution's independence as beneficial to the country’s economic health.

Biden's incorrect claim, however, drew attention to the frequent discussions and consultations that typically occur between the White House and the Federal Reserve, particularly during times of economic stress.

Trump's Historical Criticism Of Federal Reserve

In 2018, Donald Trump openly criticized Federal Reserve Chairman Jerome Powell for raising interest rates, arguing that it was detrimental to economic growth. This public dissatisfaction showcased a stark contrast in presidential etiquette regarding the Federal Reserve’s operations.

“I’m not thrilled,” Trump had stated in a 2018 interview with CNBC's Joe Kernen, expressing his discontent with the Fed’s decision to hike rates. “Because we go up and every time you go up they want to raise rates again. I don’t really — I am not happy about it. But at the same time I’m letting them do what they feel is best,” he added, highlighting a begrudging tolerance for the Fed's independence.

The Federal Reserve responded to mounting pressures by beginning to cut interest rates in 2019, which some interpreted as a concession to Trump's criticisms.

Biden's Inaccurate Claim Draws Scrutiny

The inaccuracy of Biden's claim has sparked discussions on the appropriate level of communication between the White House and the Federal Reserve. While the President intended to reinforce the notion of non-interference, the factual error has led to questions about the clarity and accuracy of his statements.

Political analysts suggest that maintaining the Federal Reserve’s independence is crucial for ensuring unbiased monetary policy decisions that are based solely on economic indicators and not political influence.

This episode serves as a reminder of the delicate balance presidents must maintain in discussing the Federal Reserve publicly, where words can have significant implications for market and public perceptions.