World’s central banks feel under target

Global Business

worlds-central-banks-feel-under-target

Three of the world’s most important central banks are increasingly the target of attacks by political leaders.

There’s growing concern that this trend now risks their cherished independence.

CCTV America’s Owen Fairclough explains why.

World’s central banks feel under target

World’s central banks feel under target

Three of the world’s most important central banks are increasingly the target of attacks by political leaders. There’s growing concern that this trend now risks their cherished independence. CCTV America’s Owen Fairclough explains why.

From Frankfurt,to London,to Washington, central banks are under siege.

Besides Republican Presidential nominee Donald Trump, other Republicans have claimed that U.S. Federal Reserve Chief Janet Yellen is cozy with the Obama administration, keeping interest rates low to help the U.S. president’s popularity–a claim Yellen denies.

“The Federal Reserve is not politically compromised. We do not discuss politics in our meetings,” Yellen said.

There’s a similar debate brewing in Britain. New Prime Minister Theresa May’s suggestion that zero interest rates were hurting savers was considered a broadside at the Bank of England.

Mark Carney, the Governor of the Bank of England, has been accused of overestimating the impact of Brexit and slashing interest rates when the economy proved resilient.

Zero interest rates have also put the European Central Bank on the defensive from German politicians who think they contributed to Deutsche Bank’s financial crisis.

The conflict isn’t likely to end soon.

Next month the U.S. Federal Reserve will meet to decide whether or not to raise interest rates just over a week before voters decide if its chief antagonist, Donald Trump, should be president.


Saruhan Hatipoglu discusses the Central Bank Independence

CCTV America’s Rachelle Akuffo spoke with Saruhan Hatipoglu, CCTV Global Economics Analyst, about the Central Bank independence.