Is Fed Independence at Risk?
The independence of the Federal Reserve is a cornerstone of U.S. economic stability. Recent remarks by President Trump suggesting he may attempt to remove Chair Jerome Powell raise serious concerns about the politicization of monetary policy. Powell’s April 16, 2025 speech at the Economic Club of Chicago—moderated by former Reserve Bank of India Governor and economist Raghuram Rajan—underscored the Fed’s commitment to its dual mandate of price stability and maximum employment, even amid the economic uncertainty introduced by administration-led tariffs. Powell emphasized that maintaining this balance is especially difficult when political actions exacerbate inflationary pressures. Rajan’s thoughtful moderation of the post-speech Q&A highlighted the complexity of today’s economic challenges and the importance of keeping the Fed’s policy decisions data-driven, not politically influenced. His presence was especially noteworthy given his prescient 2005 paper, 'Has Financial Developm...
