Boston Fed: Federal Reserve Independence Has Been Eroded

BlockBeats News, February 26: Atlanta Fed President Bostic said on Wednesday that cracks between the Fed and the White House have begun to erode public trust in the central bank's apolitical status. This is one of the most direct warnings to date from a senior monetary policy official about the consequences of Trump's tough stance on the Fed.

In a farewell article written before his retirement at the end of February from the Atlanta Fed, Bostic said his colleagues within the Fed system are still committed to separating their work from politics. "But my visits over the past few months have made it clear that the legal and verbal jousting around the central bank has led people from all walks of life to begin questioning the Fed's independence, which is deeply concerning."

Bostic is not the only Fed official this year to emphasize the importance of central bank independence, but no one has directly warned as he did on Wednesday that the current series of controversies could weaken public trust in the institution. (Golden Ten)