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bit.ly/4rrQq9l
Debate about the political independence of the Federal Reserve, highlighted over the past year in large part by President Donald Trump’s haranguing of the U.S. central bank over interest rate policy, continued this week after the president named Kevin Warsh as his choice to succeed current Fed chairman Jerome Powell.
Today’s debate over the design and purpose of the Federal Reserve mirrors, in many ways, challenges that arose amid conditions wrought by the Great Depression, namely, can the Fed act in the long-term economic interest of the nation if its decisions are subject to political pressure?
That was certainly on the mind of Utah Banker Marriner Eccles as he assumed the helm of the Fed in 1934, a time that found the U.S. central bank in a sorry state of fragmentation and weakened by its undue deference to the U.S. Treasury Department. Eccles is widely credited with establishing the modern-day version of the U.S. central bank.
In a Deseret News interview,
@BYUMarriott professor and former Federal Reserve economist
@JasonKotter explained why keeping politics out of monetary policy is crucial for the country’s economic stability and how important a role Eccles played in establishing the central bank’s independence.
Read more about the Federal Reserve, Eccles and the interview with Kotter at the link above.
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@DNTechHive, Deseret News
ALT What happens to the U.S economy if the Federal Reserve loses its independence?
Utah banker Marriner Eccles is widely credited with establishing the modern-day version of the U.S. central bank. A BYU professor explains why that is still important.