Waylon Wong

And this is not the first time Trump has raised this possibility of interfering with the Fed or even firing Powell. Trump has been loudly critical of Powell for years now. And since January, the president has accused him of playing politics by keeping interest rates high.

And this is not the first time Trump has raised this possibility of interfering with the Fed or even firing Powell. Trump has been loudly critical of Powell for years now. And since January, the president has accused him of playing politics by keeping interest rates high.

And this is not the first time Trump has raised this possibility of interfering with the Fed or even firing Powell. Trump has been loudly critical of Powell for years now. And since January, the president has accused him of playing politics by keeping interest rates high.

And I'm Weyland Wong. Why is the independence of the Federal Reserve so sacred? Why does just the idea of Trump interfering with the Fed send economists into a tizzy?

And I'm Weyland Wong. Why is the independence of the Federal Reserve so sacred? Why does just the idea of Trump interfering with the Fed send economists into a tizzy?

And I'm Weyland Wong. Why is the independence of the Federal Reserve so sacred? Why does just the idea of Trump interfering with the Fed send economists into a tizzy?

The Fed has more credibility. Investors and the public generally believe it will try to do what it takes, and that's important in getting the job done.

The Fed has more credibility. Investors and the public generally believe it will try to do what it takes, and that's important in getting the job done.

The Fed has more credibility. Investors and the public generally believe it will try to do what it takes, and that's important in getting the job done.

Right. The president appoints the members of the Federal Reserve Board. The Federal Reserve's goals, low inflation and high jobs, are set by Congress. And the agency is accountable to Congress.

Right. The president appoints the members of the Federal Reserve Board. The Federal Reserve's goals, low inflation and high jobs, are set by Congress. And the agency is accountable to Congress.

Right. The president appoints the members of the Federal Reserve Board. The Federal Reserve's goals, low inflation and high jobs, are set by Congress. And the agency is accountable to Congress.

That didn't mean that presidents didn't try to influence the Fed. Like think of Arthur Burns, Fed chair in the 1970s.

That didn't mean that presidents didn't try to influence the Fed. Like think of Arthur Burns, Fed chair in the 1970s.

That didn't mean that presidents didn't try to influence the Fed. Like think of Arthur Burns, Fed chair in the 1970s.

The Bank of Japan, the Bank of Mexico, and the Bank of England became independent in the 1990s. The European Central Bank was built as independent from day one. And the evidence suggests that independence works to control inflation.

The Bank of Japan, the Bank of Mexico, and the Bank of England became independent in the 1990s. The European Central Bank was built as independent from day one. And the evidence suggests that independence works to control inflation.

The Bank of Japan, the Bank of Mexico, and the Bank of England became independent in the 1990s. The European Central Bank was built as independent from day one. And the evidence suggests that independence works to control inflation.

Exactly. Carolina also talks about countries that have eroded their central bank independence.

Exactly. Carolina also talks about countries that have eroded their central bank independence.