Central Banks Are the Fall Guys | Metals Mine

  • Central Banks Are the Fall Guys

    From project-syndicate.org

    Central-bank independence is back in the news. In the United States, President Donald Trump has been berating the Federal Reserve for keeping interest rates too high, and has reportedly explored the possibility of forcing out Fed Chair Jerome Powell. In Turkey, President Recep Tayyip Erdoğan has fired the central-bank governor. The new governor is now pursuing sharp rate cuts. And these are hardly the only examples of populist governments setting their sights on central banks in recent months. In theory, central-bank independence means that monetary policymakers have the freedom to make unpopular but necessary ... (full story)

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swagtrading
Jul 31, 2019 10:31am
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Central Banks are always the fall guy, and in many cases justifiably so. I remember when in 2004, Greenspan was slow in raising rates, he was called for creating the housing bubble and then in 2008, Bernanke was criticized for not forecasting a recession and not cutting fast enough, even tho he did a lot more a while later. Now Powell is in the firing line!
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bigtx
Jul 31, 2019 11:13am
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Isn't that kind of their purpose? If anyone knew definitively what happens in the market, the game would be over.
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