The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Former U.S. Treasury Secretary Lawrence Summers (R), then U.S. President Barack Obama's National Economic Council Director-designate, listens to Obama as he announces the members of his economic policy team during a news conference in Chicago, November 24, 2008.
Former U.S. Treasury Secretary Lawrence Summers (R), then U.S. President Barack Obama's National Economic Council Director-designate, listens to Obama as he announces the members of his economic policy team during a news conference in Chicago, November 24, 2008.
(John Gress/Reuters)

BREAKINGVIEWS

Tough chairman race may prevent politicizing the Fed

Reuters Breakingviews delivers agenda-setting financial insight. Its global correspondents react to stories as they develop, delivering sharp and provocative commentary on big financial news as it breaks.

America’s dysfunctional politics might just preserve the central bank’s independence – if inadvertently. President Barack Obama’s pick as the next chairman of the Federal Reserve, Larry Summers, was torpedoed by congressional opposition. That suggests an unwelcome increase of political meddling in the Fed’s affairs. But if the Fed’s internal choice, Janet Yellen, gets the job, isn’t the central bank’s sovereignty maintained? It’s a messy way to the right outcome.