Lula government studies imitating the USA in exchange for BC command – 12/27/2023 – Mônica Bergamo

A year after Lula (PT) took office as president, members of the government’s first echelon are once again defending changes to the Central Bank’s (BC) autonomy rules established in Complementary Law 179, which came into force in 2021.

AMERICAN MIRROR

The idea is to defend changes that make the Brazilian model equal to that of the USA. There, elected presidents, after one year of taking office, can replace the president of the FED (Federal Reserve System), the American Central Bank. The financial director has a four-year mandate, which ends in the year following the inauguration of the country’s new president.

SUFFERING

In Brazil, the BC commander also has a four-year term — but it only ends two years after the country’s new president takes office. Therefore, Lula took over the government in January 2023, but will only be able to remove Roberto Campos Neto from the Central Bank in 2025.

LIMIT

In the opinion of members of the Brazilian government, the rule excessively limits the powers of the President of the Republic, who is unable to fully implement his economic project approved at the polls.

ON THE HEIGHTS

Campos Neto, for example, kept interest rates high for several months, and only recently did they begin to fall.

LOW

In the opinion of his critics, this has led to a drop in investment, compromising prospects for more vigorous economic growth during Lula’s mandate.

GOODBYE

In the USA, it is different: the president only needs to support an adverse BC president in the first year of his term.

BYE 2

Donald Trump, for example, took office in January 2017. A year later, he dismissed the then FED president, Janet Yellen, who had been appointed by Barack Obama, and replaced Jerome Powell.

YOU CAN STAY

Joe Biden took office in January 2021. At the end of the year, he decided to keep Powell in office, who took office for a new four-year term in 2022.

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REARVIEW

Presenter Sandra Annenberg was photographed at the Pinacoteca in São Paulo, where she recorded the program Retrospectiva 2023, which will air on TV Globo on Friday (29), after the soap opera “Terra e Paixão”. “We saw democracy being tested here and in many countries, and we also neglected our nature so much that we went beyond the limit. These and many other issues that were notable will be in the 2023 Retrospective”, says Sandra.

_{with BIANKA VIEIRA, KARINA MATIAS It is MANOELLA SMITH}

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