MNI BRIEF: Kashkari Says Independent Fed ‘Foundational’ 

Central bank independence is key to ensuring the Federal Reserve can keep inflation low and stable in the long run, Minneapolis Fed President Neel Kashkari said Tuesday. 

“It's now conventional wisdom and advanced economies all around the world that keeping monetary policy independent of short term political considerations leads to better outcomes for that economy, leads to lower inflation over time, leads to stronger economic growth, leads to better levels, higher levels of employment,” Kashkari said. 

“If you look in the 1970s we did not have that. The Federal Reserve screwed up, allowed itself to make decisions for political reasons, and then we had very high inflation and stagflation of the 1970s. So I think independent monetary policy has been foundational for our economic success over the past 40 years." (See MNI INTERVIEW: Fed Independence Facing Imminent Risk-Menand)