Preserving Central Bank Independence: A Crucial Economic Pillar

IMF chief economist Pierre-Olivier Gourinchas emphasizes the significance of maintaining the independence of central banks in response to U.S. President Donald Trump's suggestions to remove Federal Reserve Chair Jerome Powell. Maintaining credibility in controlling inflation is a key reason for upholding central banks' autonomy.

Amid calls from U.S. President Donald Trump for the dismissal of Federal Reserve Chair Jerome Powell, IMF chief economist Pierre-Olivier Gourinchas on Tuesday stressed the critical need for central banks to remain independent.

Gourinchas addressed the issue during a press briefing, highlighting that central banks' credibility in fighting inflation is closely tied to their autonomy from political influences.

His remarks came as Trump's comments highlighted ongoing debates about the central bank's role in economic governance, underscoring the importance of safeguarding their independent operations for economic stability.

(With inputs from agencies.)