Bernanke said, "Trump Fed's infringement on independence will negatively impact inflation"

Former U.S. Federal Reserve Chairman Ben Bernanke has expressed concern that any infringement of central bank independence in the second Trump administration could negatively impact inflation and markets.

Bernanke said at the annual meeting of the National Economic Association that he was optimistic about the Fed's independence, but that he should actively communicate with it.

Bernanke said the Fed should explain to Congress and the public what it is doing and why it is doing so and highlight the negative impact it will have on inflation and markets if the Fed loses its independence.

Meanwhile, Trump's predicted tariff hikes, tax cuts, and immigrant policies will have a limited impact on inflation.

Bernanke said tough immigration policies are a slow and uncertain process, which is likely not to have a significant impact on the aggregate demand and aggregate supply balance, as fewer people work and at the same time fewer people spend.Regarding the

high tariff, it is difficult to predict because it is not known whether it is for negotiation purposes or temporary.

However, according to the 2018 Fed report during Trump's first term, it was determined that the tariffs put in place at the time were not particularly serious, so it would not drastically change the path of inflation except for the unusual situation.