Tag Archives: Independence

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Fed Independence

Author: Robert Eisenbeis, Ph.D., Post Date: July 23, 2018
Cumberland Advisors Market Commentary by Robert Eisenbeis, Ph.D.

In the wake of the turmoil in Washington, DC, over his performance in Helsinki, President Trump also took a sideswipe at the Federal Reserve, criticizing the FOMC’s recent efforts to normalize policy.

Most presidents – though not all – have understood that Fed independence ensures separation from the Treasury and serves as a check on fiscal excesses. When a central bank takes orders from the fiscal side of government, history shows that inflation and economic decline soon follow.