An Alarming Challenge

摘要

The Federal Reserve will issue its last rate decision for the year at its Dec. 18-19 meeting. Economists still expect a hike in interest rates, though the latest employment data, which point to slowing job growth, have complicated what looked to be an easy decision.India's government is conducting a dangerous experiment in economic management. On Dec. 10, following renewed pressure to conform to the government's thinking, Urjit Patel, the head of the Reserve Bank of India, resigned, citing "personal reasons."Prime Minister Narendra Modi's officials have challenged the RBI's operational independence before, but the effort that led to Patel's resignation marked a significant escalation. It's a pattern seen elsewhere as well-witness U.S. President Donald Trump's frequent attacks on Federal Reserve policies. Too many governments seem to be forgetting why central banks need to be independent.