The Limits of Central-Bank Independence
Central-bank independence has been a pillar of
economic policymaking in recent decades, giving monetary authorities the
political cover to pursue necessary but potentially painful measures when
conditions demand. What matters, however, is not independence per se, but
rather the political consensus that underpins it.
Trump Promises Lower Interest Rates, but the
President Doesn’t Control Those
The Federal Reserve sets interest rates, and it
operates independently of the White House. But rates could come down as
inflation cools.