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https://theconversation.com/why-the-worlds-central-bankers-had-to-speak-up-against-trumps-attacks-on-the-fed-273450>
"Central bankers from around the world have issued a joint statement of support
for US Federal Reserve Chair Jerome Powell, as he faces a criminal probe on top
of mounting pressure from US President Donald Trump to resign early.
It is very unusual for the world’s central bank governors to issue such a
statement. But these are very unusual times.
The reason so many senior central bankers – from Australia, Brazil, Canada,
Europe, New Zealand, South Africa, South Korea, the United Kingdom and other
countries, as well as the central banks’ club the Bank for International
Settlements – have spoken up is simple. US interest rate decisions have an
impact around the world. They don’t want a dangerous precedent set.
Over the course of my career as an economist, much of it at the Reserve Bank of
Australia and the Bank for International Settlements, I have seen independent
central banks become the global norm in recent decades.
Allowing central banks to set interest rates to achieve inflation targets has
avoided a repeat of the sustained high inflation which broke out in the 1970s.
Returning the setting of monetary policy to a politician, especially one as
unpredictable as Trump, is an unwelcome prospect."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
