The importance of Central Bank credibility

A recent Gallup Poll shows that only one third of Americans think that the Federal Reserve (the US Central Bank) is doing a good job, and this isn't helped by politicians in the extreme right of the Republican party and the extreme left of the Democrat party chastising the Bank for keeping interest rates too low (Republicans) or not doing enough to help the poor (Democrats). This criticism does not help the Fed to do its job - having a credible Central Bank is crucial in ensuring that the monetary policy transmission mechanism actually works.