Mainstream economists hold sacred the notion that central banks must be shielded from political influence. The U.S. Federal Reserve's fundamental job is to set interest rates at the optimal level to keep employment high and inflation low.
A few weeks ago, Trump told reporters that he 'strongly' felt that presidents should have 'at least a say' over the central bank's policy decisions, shattering a modern taboo against presidential involvement in Fed policy making.
If Trump wins in November, we may learn the hard way just how important Fed independence was all along.
Central-bank independence is not sacred to Donald Trump. During his four years in the White House, he tried and failed to bend the Federal Reserve to his will.
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