JAY POWELL COULD LAND ON THE BALLOT IN 2024
Central bank independence has an irresistible appeal. When monetary policy is insulated from government, vote-seeking politicians can’t interfere to get a short-term economic fillip. As elections loom in 2024 in countries like the U.S. and the UK, that logic may come in for a stress test. Start with the United States. There, President Joe Biden is likely to go up in November against Donald Trump, who, while president, suggested Federal Reserve Chair Jay Powell was an American “enemy” for not slashing interest rates. Trump’s attack didn’t go far. Within a few months Covid-19 had hit, leading the Fed to slash rates to zero anyway. Powell is good at politics, too: his confirmation to a second term in 2022 won the support of 80 out of the 99 senators who voted.
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