Frankfurt (Germany), 1 July (LaPresse) – “The Federal Reserve has long been an independent central bank. It will continue to be so today, and you will see no change in this regard.” This was stated by Federal Reserve Chairman Kevin Warsh during a panel discussion at the ECB Forum in Sintra, in response to a question about the central bank’s independence from the positions of US President Donald Trump. Warsh reiterated that the Fed remains focused on its mandate of price stability. “If anyone – whether households, businesses or financial markets – thought that this central bank might accept an inflation target above 2 per cent, they will be disappointed. We will restore price stability in the United States. That is the commitment made by this Committee, and that is our objective,” he said. The Fed Chair also emphasised that inflation expectations and inflationary risks have eased in recent weeks, whilst noting, however, that “tactics and strategy will be determined as we go along”, and that decisions will continue to be made on the basis of evolving economic data.
Fed’s Warsh: “Central bank independence will not change”
Frankfurt (Germany), 1 July (LaPresse) – “The Federal Reserve has long been an independent central bank. It will continue to be so today, and you will see no change in this regard.” This was stated by Federal Reserve Chairman Kevin Warsh during a panel discussion at the ECB Forum in Sintra, in response to a question about the central bank’s independence from the positions of US President Donald Trump. Warsh reiterated that the Fed remains focused on its mandate of price stability. “If anyone – whether households, businesses or financial markets – thought that this central bank might accept an inflation target above 2 per cent, they will be disappointed. We will restore price stability in the United States. That is the commitment made by this Committee, and that is our objective,” he said. The Fed Chair also emphasised that inflation expectations and inflationary risks have eased in recent weeks, whilst noting, however, that “tactics and strategy will be determined as we go along”, and that decisions will continue to be made on the basis of evolving economic data.
