CentralBankIndependence

Jerome Powell Asserts Independence: Trump Can't Fire Him, But Things Might Change

13 days ago

In a recent statement, Jerome Powell, the Chair of the U.S. Federal Reserve, clarified that President Donald Trump does not have the authority to remove him from his position. This comment comes amidst ongoing tensions between the White House and the Federal Reserve regarding monetary policy, specifically interest rates and inflation control measures. Powell’s remarks underscore the independence of the Federal Reserve, which is designed to operate free from political pressure, a principle that has been foundational to its operations since its inception.

A Controversial Perspective: Does Central Bank Independence Undermine Democracy?

2 months ago

A provocative new book challenges the long-held belief in the necessity of central bank independence, arguing instead that it may pose risks to democratic governance. The author delves into the historical context and implications of monetary policy control, suggesting that the detachment of central banks from direct political influence can lead to a disconnect between economic policy decisions and the will of the electorate.

ECB's Villeroy Asserts Independence on Interest Rate Decisions

4 months ago

In a striking assertion made on November 23, 2024, the European Central Bank (ECB) has highlighted its potential ability to lower interest rates independently from the Federal Reserve's actions. This declaration came from François Villeroy de Galhau, a crucial decision-maker at the ECB, who articulated that the Eurozone's monetary policy framework allows for such flexibility, particularly in response to regional economic conditions.