Incompetent and insecure leadership: US Federal Reserve adopts average inflation target

Year: 2020

FMG CEO Devadas criticises the US Federal Reserve’s adoption of an average inflation target, attributing it as a signal of submission to the whims of US President Donald Trump, and a consequence of weak will and incompetency:

“What we are witnessing is an erosion of the independence of the Federal Reserve and its politicisation to serve the interests and convenience of the President rather than the longer-term macroeconomic and financial health of the economy. Further, Chairman Powell represents a break from a tradition of appointing competent, credible, respected and proven economists as Chairman.

The consequence is a reduction in competency in monetary policy leadership and a growing and explicit subordination of independence due to a combination of personal insecurity and lack of competency to intellectually dominate the challenges instead of being dominated by them.”