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Finnish Central Bank Governor Warns Against Undermining Fed Independence

Finnish Central Bank Governor Olli Rehn warned that any interference with the independence of the US Federal Reserve could lead to higher inflation rates and pose serious risks to financial stability.

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Rehn expressed his “full solidarity” with Federal Reserve Chair Jerome Powell, stressing that actions or threats aimed at undermining central bank independence could erode the credibility of financial markets, particularly bond markets.

 

He emphasized that preserving central bank independence and the autonomy of monetary policy is a fundamental pillar for maintaining investor confidence and ensuring long-term economic and financial stability.

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