Markets ignore the internal politics of central banks at their peril

Stay informed with free updates

Simply sign up to the Central banks myFT Digest — delivered directly to your inbox.

The writer is a former president of the World Bank

This year macroeconomists and market mavens alike have been making mistaken guesses about the interest rate calls of major central banks. The masters of finance need to add another element to their forecasts: institutional politics. 

Neither the US Federal Reserve’s Jay Powell…