Trump and other world leaders have been named and shamed in the recent Fitch ratings report. Slowing global economic growth coupled with governments’ relentless interventions are eroding central banks’ independence around the world.
1. Trump Makes the Fed Look Stupidly Un-Independent
Ever since his presidency began, Trump has been on a mission to gain greater control of the Central Bank. He’s already placed four out of seven board members and nominated a further two.
However, according to the Fitch report, this government intervention sets a dangerous precedent–in the U.S. and around the world.
Global Head of Sovereign Ratings at Fitch James McCormack adds that Central Banks are:
being increasingly viewed by governments as ripe for a broadening of their remit.
He adds that now is the time for investors to think deeply about what a global recession and greater pressure from governments on central banks to support economic growth could mean for their portfolios.
Fitch believes investors would be wise to consider the…