India, Sept. 23 -- US President Donald Trump's recent attempt to sack Federal Reserve Governor Lisa Cook, the Supreme Court's meddling in the matter, and the hurried appointment of Stephen Miran, Trump's appointee on the Fed board of governors, is extraordinary and unseemly. It inevitably triggers thoughts that leaders in other countries could emulate this course of action. More importantly, it diminishes the basic philosophy of regulatory and regulators' independence.

To be sure, independence is not immunity. When Parliament or Congress (in the US) creates regulators, it delegates sovereign power. That delegation is meant to prevent regulatory capture. But, if regulators end up serving the interests of those who appointed them, regulato...