Yellen warns of fiscal dominance at the Fed
Former chair joins economists in sounding alarm over central bank’s response in event of debt crisis
Janet Yellen has warned that the US Federal Reserve could become “the fiscal authorities’ financing arm”.
Speaking on a panel at the Allied Social Science Associations’ annual meeting in Philadelphia on January 4, the former Fed chair and Treasury secretary said the threats that president Donald Trump’s policies posed to Fed independence meant there was a greater risk of fiscal dominance at the US central bank. This, she added, had been something that modern central banking had been ardently
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