PrintFed's loss of independence would push up inflation, threaten stability, ECB's Rehn says
BY Reuters | ECONOMIC | 04:59 AM ESTFRANKFURT, Jan 14 (Reuters) - Any loss of U.S. Federal Reserve independence would push up inflation and might even ?endanger financial stability, Finnish central bank ?Governor Olli Rehn said on ?Wednesday as he expressed "full ?solidarity" with ?Fed Chair Jerome Powell.
"If the independence ?of the Federal ?Reserve were to be undermined, that would mean ?that we could ?see ?a kind of structural rise of inflation," Rehn, who is ?running to become the European Central Bank's next vice president, told CNBC.
"This kind of action or threats to central ?bank ?independence may undermine the credibility of financial markets ?and also bond markets, and that's why, in my view, it is important also for the U.S. bond markets and U.S. financial ?stability, that central bank independence, monetary independence, is maintained," he said.
(Reporting by ?Balazs Koranyi; Editing by Hugh Lawson)
