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Trump attacks on Fed set bad example for Asia

Myth of central bank independence helps protect objective monetary policy

| India
Reserve Bank of India Governor Shaktikanta Das is seen as politically malleable.   © Reuters

One of the sustaining myths of modern economics is that central banks are independent, able to pursue monetary policy free from the pressures of politics. Donald Trump is demonstrating once again that this is, indeed, a myth.

In his latest intervention on April 5, the U.S. president urged the U.S. Federal Reserve to "drop rates" and turn the economy into "a rocket ship."

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