Federal Reserve Chair Jerome Powell issued a rare warning that the Fed’s credibility is at risk, suggesting that political pressure is threatening the central bank’s independence. His reference to “stress tests” was interpreted as a response to executive interference in monetary policy. The statement has drawn market attention as it may signal unprecedented external pressure on the Fed’s rate-setting process.
Federal Reserve Chair Jerome Powell has officially stepped down, marking the beginning of a new era of uncertainty for the world’s most influential central bank. Powell’s tenure spanned the COVID-19 pandemic, historic inflation spikes, and the most aggressive rate-hiking cycle in decades. The Fed now faces what analysts are calling a “regime change.” The new leadership will inherit an economy where inflation remains stubbornly persistent – the 30-year US Treasury yield has just broken to its highest level in nearly 20 years, sending global bond markets reeling. ...