TOKYO (AP) — The Federal Reserve and other central banks must protect their ability to make key economic decisions free from political interference, Fed Chairman Ben Bernanke said Wednesday.
As governments move ahead on reforms to prevent another global financial crisis like the one in 2008, Bernanke stressed the importance of the Fed and central banks in other countries maintaining their independence over setting interest rates, known as monetary policy.
The Fed, for instance, often must make decisions such as boosting rates to keep inflation in check that are unpopular with politicians but are necessary for a healthy economy.
Bernanke’s comments come as Congress edges closer to completing action on revamping U.S. financial rules, and subjecting the Fed to more oversight.
And Congress will give him what he asks…
May 25, 2010