Fed's loss of independence would push up inflation, threaten stability, ECB's Rehn says
Presidential candidate Olli Rehn attends the presidential elections debate at Yle, the Finnish Broadcasting Company in Helsinki, Finland January 25, 2024. Lehtikuva/Vesa Moilanen via... Purchase Licensing Rights, opens new tab Read more
FRANKFURT, Jan 14 (Reuters) - Any loss of U.S. Federal Reserve independence would push up inflation and might even endanger financial stability, Finnish central bank Governor Olli Rehn said on Wednesday as he expressed "full solidarity" with Fed Chair Jerome Powell.
"If the independence of the Federal Reserve were to be undermined, that would mean that we could see a kind of structural rise of inflation," Rehn, who is running to become the European Central Bank's next vice president, told CNBC.