U.S. Fed’s Independence Tested by Trump Pressure
Treasury markets trembled today as former President Trump renewed his assault on Federal Reserve Chair Jerome Powell, accusing the Fed of failing America amid high inflation. The clash follows a spate of critical tweets and public remarks, intensifying concerns over the central bank’s autonomy .
The Federal Reserve, charged with stabilizing prices and guiding recovery, now faces scrutiny not just from markets but from a commanding former president. Observers fear that persistent pressure may erode its independence, forcing the Fed into politically motivated rate decisions.
Insiders indicate that Powell is empowering internal studies to reinforce the Fed's mandate-based credibility. Across Wall Street, analysts caution that overt politicization could undermine investor trust and exacerbate inflation volatility—risks the Fed was explicitly established to avoid .
Inflation remains stubbornly above target. Any perception of political meddling could disrupt expectations and trigger premature market sell‑offs.
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