European Central Bank Governing Council member Olli Rehn warned on Thursday that political pressure from U.S. President Donald Trump is undermining the Federal Reserve’s independence, marking what he called the first serious test of that autonomy in decades. In a speech, the Finnish policymaker said challenging the Fed’s arm’s-length status poses “significant” risks to global financial markets and the real economy. Should the central bank’s independence collapse, Rehn cautioned, inflation would “inevitably pick up” as investors and households lose confidence in the Fed’s commitment to price stability.
European Central Bank Official Rehn Warns That If US Federal Reserve's Independence Is Compromised, Inflation Would "Inevitably Pick Up" 🇪🇺🇺🇸
ECB's Rehn: If Fed's Independence Crumbled, Inflation Would Inevitably Pick Up
Undermining Fed Independence Creates Big Risks, ECB’s Rehn Warns - BBG https://t.co/LD0lbfnZSu