Federal Reserve Must Be Independent

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. Recent attempts to compromise that independence, including the president’s demands for a radical reduction in interest rates and his threats to fire its chair, Jerome Powell, if the Fed does not comply, risk lasting and serious economic harm. They undermine not only Mr. Powell but also all future chairs and, indeed, the credibility of the central bank itself. Read Full Article »