The Federal Reserve was forced to reassert that “political considerations play absolutely no role” in policymaking after the former head of the New York Fed urged the central bank to consider Donald Trump’s re-election prospects in setting rates.
A spokeswoman for the Fed’s board of governors told the Financial Times that the central bank’s rate-setting body rejected the suggestion by Bill Dudley, who also served as the Fed’s vice-chairman. Mr Dudley also wrote that they should “refuse” to dole out stimulus to cushion the damaging effects of Mr Trump’s trade war.
“The Federal Reserve’s policy decisions are guided solely by its congressional mandate to maintain price stability and maximum employment,” the spokeswoman said. “Political considerations play absolutely no role.”