Volker Wieland recommends new Fed Chair Powell to use monetary policy rules ("Welt am Sonntag")

This Monday, Jerome Powell is sworn in as new Chairman of the Board of Governors of the Federal Reserve System. Volker Wieland is not concerned about the central bank's independence. However, in his opinion, the application of monetary policy rules could be useful for the new chair.

"Until proved otherwise, I am not concerned about the new chair being less independent than his predecessor Janet Yellen," Wieland said in an interview with the weekly newspaper "Welt am Sonntag". 

According to Wieland, it would be useful for the Fed to publish a monetary policy rule and explain deviations before US Congress. "This would help to further immunize the Fed against pressure by the President," he said.

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