Federal Reserve's Bostic: The Fed's independence has been eroded

Atlanta Federal Reserve President Raphael Bostic said Wednesday that the rift between the Fed and the White House has begun to erode public trust in the central bank's apolitical position. This is one of the most direct warnings yet from a senior monetary policy official about the consequences of Trump's hardline stance against the Fed. In his farewell address before retiring from the Atlanta Fed at the end of February, Bostic said his colleagues within the Fed system remain committed to keeping their work separate from politics. "But my visits over the past few months have made it clear that the legal and verbal battles surrounding the central bank have led people from all walks of life to question the Fed's independence, which is a serious concern." Bostic is not the only Fed official this year to emphasize the importance of central bank independence, but no one has warned as directly as he did on Wednesday that the current controversies could undermine public trust in the institution.