Central bank independence is in need of better defence


US President Donald Trump and Fed chair Jerome Powell. — Reuters

Investors may be fixated on President Donald Trump’s attacks on the US Federal Reserve (Fed), but the Bank of England also faces increasing political scrutiny, raising alarm bells about the future of central bank independence.

The US president has fired a regular volley of vitriol at Fed chief Jerome Powell in recent months, demanding interest rates cuts and hinting that he will appoint a presumably more like-minded replacement when Powell’s term ends next year.

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