Four Former Fed Chairs: U.S. Needs Independent Federal Reserve System

Four former Fed chairs are calling for independence for the Federal Reserve System and its chair, Jerome Powell. In an op-ed in The Wall Street Journal, Paul Volcker, Alan Greenspan, Ben Bernanke, and Janet Yellen write that independence is best for the economy, employment rate, and stable prices. “We are united in the conviction that the Fed and its chair must be permitted to act independently and in the best interests of the economy, free of short-term political pressures and, in particular, without the threat of removal or demotion of Fed leaders for political reasons,” they wrote, in an apparent reference to President Trump’s constant threats to remove Powell. They added that the Fed’s independence is crucial for making decisions based on “the best interests of the nation, not the interests of a small group of politicians.” The four former chairs emphasized that the Fed can be independent and still remain accountable, and that “elections have consequences,” writing that they hope the next chair “will be based on the prospective nominee’s competence and integrity, not on political allegiance or activism.”