And it is not just about politics. As my colleagues have noted, the idea that the Fed should interfere in a presidential election violates not only the Fed’s independence but the spirit of democratic governance. To stand pat in the face of a trade war is misguided on economic grounds as well.
SINGAPORE (Aug 30): The US Federal Reserve has responded to the suggestion that it wade into presidential politics the only way it could: with a forceful denial. “The Fed’s decisions are guided solely by its congressional mandate to maintain price stability and maximum employment,” says a spokeswoman. “Political considerations play absolutely no role.”
The statement is admirably direct. Still, it is not enough. Chairman Jerome Powell has no choice but to speak out to defend the Fed.
