Janet Yellen emphasises Fed independence
The Federal Reserve chairwoman, who could be on a collision course with president-elect Donald Trump, has pledged to serve out her term
Washington — The election of Donald Trump as US president has done nothing to change the Federal Reserve’s plans for a rate increase "relatively soon", Fed chairwoman Janet Yellen said on Thursday in Congressional testimony that included a pledge to serve out her term. She also stressed the importance of central bank independence, reiterating the consensus among central bankers that remaining clear of politics was central to their job — a message the Fed has repeated to Congressional Republicans who have argued for closer oversight of monetary policy. "There is clear evidence of better outcomes in countries where central banks can take the long view," Yellen said. "Sometimes central banks need to do things that are not immediately popular for the health of the economy." The Fed may face pressure, given Republican control of the White House and both chambers of Congress, to hew to a more mathematical formula for setting rates, something central bankers in general argue should not ful...
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