Nominees to Fed board must be professional and politically neutral

SINCE it was created in 1913, the Federal Reserve System - the central bank of the United States with the task of managing the US monetary system so as to forestall financial crises - has stood above partisan politics, even when Washington has been rocked by partisan strife.

The elected US president would appoint the seven members of the Fed's Board of Governors, including its powerful chairman, who would then be confirmed by the Senate, with the norm being that the leaders of the Fed are expected to be qualified, competent and apolitical. The Fed chairman and his colleagues are appointed not to help score political partisan advantages but to make critical decisions on monetary policy by applying accepted economic principles and models.

The tradition of the Fed's political independence, professionalism and credibility has been the reason why it has served as a role model for other central banks and why the decisions it makes and the statements it issues have served as guiding lights for global financial markets. When the Fed speaks, the global economy listens!