ECB boss ‘worried’ over Fed’s independence

ECB boss ‘worried’ over Fed’s independence

Mubasher: European Central Bank (ECB) President Mario Draghi commented on the debate whether President Donald Trump is undermining the independence of the US Federal Reserve, Bloomberg News reported.

In a rare move, President Draghi was “certainly worried” about the independence of central banks, while specifying the one in “in the most important jurisdiction in the world,” the news outlet cited the ECB head as saying during an International Monetary Fund (IMF) meeting.

The extent to which central banks are independent from political meddling featured as a main theme in the sidelines of the IMF talks.

“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,” Draghi said, emphasising that central banks ought to be allowed the freedom to opt for the optimal policy to follow.

Draghi’s comment came also as a rare intervention from one of the central bankers who usually abstain from commenting on politics or other economies.