Political Pressure Mounts on Fed Amid Banking Failures and Scandals

The recent banking crisis has put the Federal Reserve under harsh political scrutiny, with lawmakers questioning if tougher oversight by the central bank could have prevented the failure of Silicon Valley Bank and its contagion effect on the financial system. The Fed's independence and effectiveness are at stake as it faces pressure from both Republicans and Democrats to strengthen its supervision of the banking system. Congressional hearings are set to begin next week, and the Hill is expected to launch its own investigation. The Fed's reputation for independence from politics is crucial, but it may face tangible changes as lawmakers debate reining it in.