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Supply shock, debt may hurt central bank independence: ex-Fed official

Former Fed official Donald Kohn says supply shocks and rising debt are increasing pressure on central bank independence.

Alexander Gonzalez
ByAlexander Gonzalez- Senior Editor
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Former Federal Reserve official Donald Kohn said supply shocks and rising public debt could increase pressure on central bank independence.

Speaking at a conference in Tokyo, Kohn noted that politicians may blame central banks for inflation, weakening their autonomy.

Paradoxically, he argued, these pressures strengthen the case for independence. Kohn urged central banks to protect themselves through discipline, clear communication, and institutional competence.

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Supply shock, debt may hurt central bank independence: ex-Fed ...