Tuesday, July 22, 2025

Central Banking in the Age of Fiscal Populism

‘Fiscal populism’ is coming for central banks
https://www.ft.com/content/237226e8-78e5-4326-a701-cc8b1dede1de
When monetary policy is set to meet government budgetary needs, these institutions become piggy banks.

What the Federal Reserve Can Do to Help Itself
https://www.wsj.com/opinion/what-the-federal-reserve-can-do-to-help-itself-2f286619
The central bank should focus on its dual mandate and not try to solve all the economy’s problems.



Related:

My take:
Investors beware: Fiscal dominance and financial repression ahead by VIVEKANAND JAYAKUMAR, The Hill - 07/13/25
https://thehill.com/opinion/finance/5397963-fed-keeping-rates-low-trump-administration/