On Saturday, the 13th of April 2019, in the face of nominating new Fed policymakers alongside a possibility of change in the Fed Chair role of Jerome Powell, European Central Bank President Mario Draghi expressed concerns over the independence of United States’ Federal Reserve, cautioning that a fall of its autonomy to decide what would have been better for nation’s economy could nourish US President Trump’s “America First” policy and trigger questions over the credibility of Federal Reserve’s policies.
Recently, US President Donald Trump had nominated two of his conservative candidates for Fed’s board, which had already met bitter criticisms from democrats. Besides, Trump had repeatedly been calling for an interest rate cut to nourish domestic economy, as his tax incentives for US businesses had dried up last year, which had triggered further debarkations of government interference on US Central banking policy.
Citing that a buckled up central bank would likely to make policy decisions to favor politics rather than preferring objectives of domestic outlook, Mario Draghi said about the United Sates’ central banking system, “I’m certainly worried about central bank independence in other countries, especially...
in the most important jurisdiction in the world. If the central bank is not independent, then people may well think that monetary policy decisions follow political advice rather than objective assessment of the economic outlook”.