An opinion piece by former Fed chairs Yellen, Bernanke, Greenspan and Volcker
The piece is released via the Wall St Journal and says that:
"As former chairs of the board of governors of the Federal Reserve System, we are united in the conviction that the Fed and its chair must be permitted to act independently and in the best interests of the economy, free of short-term political pressures and, in particular, without the threat of removal or demotion of Fed leaders for political reasons."
Adding that the difference between the decisions they made in the past and the current situation is that "(those decisions) were based on analysis of the longer-run economic interests of US citizens rather than being motivated by short-term political advantage".
Expanding further:
"Examples abound of political leaders calling for the central bank to implement a monetary policy that provides a short-term boost to the economy around election time. But research has shown that monetary policy based on the political (rather than economic) needs of the moment leads to worse economic performance in the long run, including higher inflation and slower growth."
The full opinion piece can be found here.
