Dear Monetary Policy Observer,
One of the underlying foundations of the Federal Reserve’s credibility is that it is a strictly nonpartisan entity. This foundation was shaken this morning as The Hill reported that Janet Yellen made a public appearance with President Barack Obama the night before closely contested midterms.
The Fed’s independence is predicated on its distance from partisan fights, and the Chair should be held to a high standard in that regard. Publicly appearing with elected officials on the eve of an election will only create undue concern that the Fed is trying to influence politics.
American Principles In Action