Global authority urges central banks to consider controls on their growing power

20 June 2018 7:22am
The head of a global authority said central banks should consider restraints on their increasing power as a way to fend off elected officials’ attacks on their independence.

Fernando Restoy, the Financial Stability Institute's chief, said one approach worth exploring is US Federal Reserve head Jerome Powell’s effort to expand the central bank’s transparency and accountability on stress testing.

Central banks also should consider withdrawing from consumer protection because of the absence of “obvious synergies” with monetary policy, said Restoy, whose Switzerland-based group is part of the Bank for International Settlements.