Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Fed's Powell Says Central Bankers Facing a `Challenging Moment'

Published 05/25/2018, 09:20 AM
Updated 05/25/2018, 11:01 AM
© Reuters.  Fed's Powell Says Central Bankers Facing a `Challenging Moment'

© Reuters. Fed's Powell Says Central Bankers Facing a `Challenging Moment'

(Bloomberg) -- Federal Reserve Chairman Jerome Powell said central banks shouldn’t take their independence for granted at a time when trust in public institutions is at “historic lows,” requiring extra effort to explain both their monetary and regulatory policies.

“This is a challenging moment for central banking,” Powell said in the text of a speech prepared for delivery Friday in Stockholm. It is “critically important to provide transparency and accountability.”

Declaring “there can be no macroeconomic stability without financial stability,” Powell spent much of his speech discussing regulatory and supervisory policies without commenting on the Fed’s monetary stance or his economic outlook.

“In the financial stability realm, the case for enhanced transparency is not just about being accountable; it is also about providing credible information that can help restore and sustain public confidence in the financial system,” he said. Powell was appearing on a panel at a Riksbank conference with the Bank of England Governor Mark Carney, European Central Bank Executive Board member Benoit Coeure, and Agustin Carstens of the Bank for International Settlements.

Powell’s remarks come against the backdrop of a global populist backlash that contributed to the election victory of U.S. President Donald Trump and has most recently propelled a euro-skeptic coalition to power in Italy.

Powell also addressed the topic of central bank independence, warning that its absence in the past has led to episodes of runaway inflation. It also, he said, imposed responsibilities on central bankers to stick to their legal mandates.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.