ECB Official Raises Concerns About Federal Reserve’s Independence

Olli Rehn, a member of the European Central Bank’s governing council and Governor of the Bank of Finland, has cautioned about potential threats to the Federal Reserve’s independence. According to Blockbeats, his remarks on Thursday highlight a significant risk for markets and the economy. Rehn noted that while price stability has been an inviolable principle since the 1980s after the double-digit inflation period, this cornerstone is now under scrutiny. He emphasized that central banks are trusted when they prioritize price stability, which fuels confidence in monetary policy decisions. This trust, Rehn explained, helps to anchor inflation expectations and makes for more effective monetary policy during economic downturns.