Jerome Powell warns Fed credibility is at risk
financeMay 31, 202616169
Former Federal Reserve chair Jerome Powell warned that the Fed's credibility would be lost if a president could fire Fed officials, saying such political interference would undermine the institution's independence. Powell said the central bank is undergoing a "stress test" and warned that "democratic institutions take much time, effort, and patience to build but can be torn down all too quickly." He said political pressure would destroy the Fed's ability to anchor inflation expectations and make every CPI and nonfarm payroll print a potential market-moving pivot, increasing volatility for stocks, bonds, and crypto.
