One of the more widely discussed topics at the IMF/World Bank Spring Meeting in Washington, D.C., this week was President Donald Trump’s move to name close political allies to seats on the Federal Reserve Board of Governors.
The scenario of Herman Cain and Stephen Moore on the five-member Fed, several participants at the meeting told questsin, would violate one of the principles that the IMF encourages its member-nations to pursue: a central banking system that is independent of politics.
IMF Managing Director Christine Lagarde said as much Saturday when asked about a possible challenge by Trump to the independence of the U.S. Federal Reserve Board.
“Independence has served [the Fed] well and hopefully it will continue,” she told reporters.
Encountering European Central Bank President Mario Draghi as he left the twice-a-year meeting of the world’s financial powers, questsin asked if the U.S.’s Federal Reserve should remain independent.
“Of course!” Draghi told us without hesitation.
John Gizzi is chief political columnist and White House correspondent for questsin. For more of his reports, Go Here Now.