Fed's Credibility Hinges on Resisting Politics, Not Playing It Safe

At the Federal Reserve's annual conference in Jackson Hole last month, Federal Reserve Chair Kevin Warsh's first speech was met with scrutiny. The focus of attention was on the Fed's upcoming rate decision next week.

Kenneth Rogoff, a Harvard economist and lunchtime speaker at the event, offered some advice to journalists: 'If they can possibly put it off till after the midterms, it would be good for the institution.'

Rogoff questioned whether preserving Fed independence is better achieved by resisting President Donald Trump's attacks or by laying low until after the elections.