Fmr. Minneapolis Fed president Stern: Fed needs to maintain objectivity of monetary policy process

Fed Independence & Monetary Policy - The market is concerned about a potential rupture in Fed independence [1] - Maintaining the objectivity and integrity of the monetary policy process is crucial [2] - The Fed should continue its responsibilities regarding monetary policy, financial stability, and bank supervision [4] - The Fed's 2% inflation target is reasonable, and low stable inflation (1-3%) is generally equivalent [12][13] Fed Structure & Governance - Regional bank presidents are appointed by local boards of directors, subject to approval by the board of governors, creating a system of checks and balances [6][7][8] - Fed governors are appointed to 14-year staggered terms to insulate the Fed from short-term pressures [9][10] Economic Impact - Tariffs are expected to have a net negative effect on the economy by distorting resource allocation and increasing costs for consumers [10][11]