Trump, Fed and central bank independence
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Mr. Bernanke and Ms. Yellen are both economists and former chairs of the Federal Reserve. As former chairs of the Federal Reserve, we know from our experiences and our reading of history that the ability of the central bank to act independently is essential for its effective stewardship of the economy.
The Australian Dollar (AUD) is extending its gains against the US Dollar (USD) on Monday as EU-US trade tensions escalate and concerns over the independence of the Federal Reserve (Fed) rise.
Kevin Hassett's Trump-era makeover is fueling questions about the independence of the Federal Reserve as he emerges as a leading contender to succeed Jerome H. Powell as chair.
The global economy is, to put it mildly, in a state of flux. Before the most recent U.S. elections, it was already being buffeted by geopolitical shocks and the prospect of transformative technological innovations.
A Fed policy rate that low is not typically a sign that the U.S. is the "hottest" country in the world for investment, as Trump has said.
The independence of central banks, which allows policymakers to operate free from political meddling, is considered sacrosanct by investors and economists.