‘Our independence is under threat’ – Yellen

Janet Yellen of the Federal Reserve

The independence of the US Federal Reserve is under threat, according to the central bank’s chief, Janet Yellen.

In a question-and-answer session at the University of Michigan on April 10, Yellen emphasised the importance of central bank independence, drawing on the Fed’s own experience.

Increased operational independence tends to lead to “stronger macroeconomic performance, stronger growth and controlled inflation”, she said.

The Fed has operational independence when setting monetary policy,