Federal Reserve's Bostic: The Federal Reserve's independence has been eroded

ChainCatcher News, Atlanta Fed President Bostic said on Wednesday that cracks between the Federal Reserve and the White House have begun to erode public trust in the central bank’s independent political status. This is one of the most direct warnings from senior monetary policy officials about the consequences of Trump’s tough stance toward the Fed.

In his farewell article, Bostic stated that his colleagues within the Federal Reserve system remain committed to keeping their work separate from politics. “But my visits over the past few months have clearly shown that the legal and rhetorical clashes surrounding the central bank have led people from all walks of life to question the Fed’s independence, which is a serious concern.” Bostic is not the only Fed official this year emphasizing the importance of central bank independence, but no one has warned as directly as he did on Wednesday that a series of current controversies could undermine public trust in the institution.