OPINION: a rock and a hard place

Author: John Crabb | Published: 23 Sep 2019

The mandate of the Federal Reserve is relatively straightforward: maximise employment, keep prices stable, and moderate long-term interest rates. Its mission statement, too, is unassuming: "The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system."

This month, however, its obligation has been called into question by one of its own. Bill Dudley, president of the New York Fed until 2018, published an op-ed in Bloomberg calling for the central bank to deviate from its normal course and step into the electoral arena.

Dudley suggests that the Fed should refuse President Trump's...