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الوطن
Trust in Fed Independence
The experience of the U.S. Federal Reserve shows that institutional independence strengthens economic confidence. In 2018, the Fed raised interest rates four times despite criticism from President Donald Trump. Its independence is supported by safeguards, including full 14-year terms for members of the Board of Governors and protection from removal merely for differing over monetary policy. Independence does not mean a lack of accountability: Congress sets broad objectives, while the Fed chooses its own tools and remains committed to transparency and oversight. An IMF paper published in March 2026 linked political changes in central bank leadership to higher and more volatile inflation in the cases it studied. For Oman, in light of the Central Bank Law issued by Royal Decree No. 3/2025, the lesson is that clearly defined responsibilities and independent professional decision-making, alongside accountability, help ensure stable rules and strengthen investor confidence.
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