Regarding the international dimensions of recent US Federal Reserve developments:

It comes as no surprise to see key central bank governors rallying in support of the Fed’s independence, as highlighted in their joint letter. Given the "demonstration effect" of the US, institutional independence is essential for both global economic stability and the effectiveness of central banks. However, this independence remains inherently fragile, particularly regarding the "democratic deficit"—the tensions that arise from granting significant power to unelected officials.

Equally unsurprising is the pushback from domestic politicians in some of these nations. In New Zealand, for instance, the RBNZ Governor was rebuked for commenting on US domestic politics and was advised to "stay in her lane."

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