All articles tagged with #fed independence
Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, defended Fed independence and Jerome Powell amid a Justice Department investigation and grand jury subpoenas, arguing that the Trump administration’s pressure on the Fed has been framed as a monetary-policy issue. He reiterated that policy decisions should be driven by the Fed’s mandate and said rates should be held steady this month.
In an unusual show of international unity, central bankers from Australia, Brazil, Canada, Europe, New Zealand, South Africa, South Korea, the United Kingdom and more issued a joint statement backing Fed Chair Jerome Powell as he faces a criminal probe and sustained political pressure from Donald Trump. They stressed that central bank independence is essential for price stability and democratic accountability, warning that politicizing monetary policy could raise inflation and long‑term interest rates, with spillovers for the global economy. The episode echoes historical precedents like the Nixon era and Turkey’s political pressure on its central bank, serving as a warning against undermining monetary autonomy.
Former special counsel Jack Smith is slated for a public Jan. 22 hearing before the House Judiciary Committee on the Trump investigations, signaling a potential shift in how the hearings unfold. Simultaneously, GOP lawmakers push on a Venezuela war-powers resolution and Republicans debate the DOJ’s investigation of Fed Chair Jerome Powell, highlighting tensions over central-bank independence and executive power, while other Capitol Hill items—from a stock-trading ban markup to crypto legislation—continue to shape the agenda.
President Donald Trump publicly called Fed Chair Jerome Powell incompetent or crooked as the DOJ probes the central bank’s leadership, while Jamie Dimon and Republican lawmakers warn that undermining Fed independence could backfire and affect future leadership amid ongoing political scrutiny.
Capitol Hill is abuzz with partisan maneuvering: the White House is pressing to sway GOP votes on a Venezuela war-powers resolution, while Republicans react to a DOJ probe into Fed Chair Jerome Powell and other policy skirmishes on NATO actions, cryptocurrency legislation, and a proposed congressional stock-trading ban, highlighting tensions over presidential power, central-bank independence, and economic policy.
Old-economy names drive the Dow higher in 2026 (Boeing ~12%, Caterpillar ~12%, Sherwin-Williams ~10%), while Visa and Salesforce drag; JPMorgan beat Q4 estimates fueling premarket gains; other headlines include L3Harris IPO plans, Delta's mixed results, core CPI up 2.6% y/y vs 2.8% expected, Intel/AMD upgrades from KeyBanc on hyperscaler demand, Reddit growth optimism from Evercore ISI, and global central banks defending Powell's independence as Trump imposes a 25% tariff on Iran trade; futures were little changed.
Jamie Dimon warned that Trump-era attacks on the Federal Reserve could backfire by raising inflation expectations and pushing rates higher, saying the Fed’s independence is crucial even as he voiced respect for Jay Powell. The comments came as JPMorgan Chase posted a 7% drop in Q4 2025 profits to about $13 billion amid weaker investment banking, though trading revenues rose. Central bankers publicly supported Fed independence amid a DOJ probe into Powell and broader scrutiny of monetary policy.
A rare international display of support from 10 major central banks, coordinated by the BIS, pledges full solidarity with Fed Chair Jerome Powell amid Donald Trump’s attacks on his independence; the piece notes Powell’s DOJ investigation related to Fed HQ renovations and warns that undermining central-bank independence could raise inflation expectations and borrowing costs.
Fed Chair Jerome Powell has not disclosed whether he will remain on the Fed board after his term ends in May, amid speculation driven by political pressures and the potential impact on Fed independence and interest rate policies. Most observers believe he will likely leave, but his decision remains uncertain, reflecting broader tensions between the Fed's independence and political influence.
Kevin Hassett, a finalist for the Fed chair, emphasizes the importance of Fed independence and consensus in setting interest rates, despite political pressures and his close ties to President Trump, amidst ongoing discussions about the Fed's leadership transition.
The article discusses concerns about political influence on the Federal Reserve, especially with a potential Trump-nominated chair, but emphasizes that the Fed's independence is protected by law and that the broader composition of the FOMC is more influential than just the chair. It also considers whether Powell will remain as a governor after his term as chair ends in 2026.
Citadel CEO Ken Griffin warns that a 3% inflation rate could be highly frustrating for Americans, emphasizing the ongoing political and economic challenges related to inflation, Fed independence, and Trump's influence on monetary policy, which could impact upcoming elections.
A bipartisan group of former U.S. economic leaders, including all living former Fed chairs, filed an amicus brief supporting Fed governor Lisa Cook against her removal, emphasizing the importance of Fed independence to prevent long-term economic harm and inflation instability. The Supreme Court is reviewing whether Trump can fire Cook amid allegations she denies, with significant implications for the Fed's autonomy and monetary policy stability.
Jerome Powell, Chair of the US Federal Reserve, dismissed claims that the Fed is influenced by politics, responding to criticisms from Donald Trump who accused him of being 'political' after refusing to lower interest rates as per Trump's demands. Powell emphasized that the Fed's decisions are data-driven and not political, amidst ongoing tensions over the Fed's independence and recent rate cuts to stabilize the economy.
The article discusses Donald Trump's dangerous attempts to undermine the Federal Reserve's independence by pressuring it to cut interest rates and firing a Fed governor, actions that could lead to higher inflation, economic instability, and long-term damage, echoing historical examples of political interference in central banks.