Federal Reserve Chair Jerome Powell warns: Central bank independence is at risk

Fed Chair's warning: The financial institution's independence is under threat

During remarks on monetary policy, Federal Reserve Chair Jerome Powell argued that the U.S. central bank might not "survive" in its current form if its officials were to be fired over political disagreements with the President.

According to a report by Watcher Guru, Powell emphasized that such an action would undermine the institution's foundations. According to the channel's announcement, Powell asserts that "the Federal Reserve will not survive" in the event of this type of political interference.

At the same time, FXStreet Forex News, reporting from official economic sources, reinforced these points and noted that Powell believes "the central bank's credibility would be lost" if the political echelon were to gain the authority to fire senior Fed officials. The report emphasizes that Powell views the institution's independence as a necessary condition for maintaining a "strong and stable economy."

The messages from both channels indicate growing concern within the financial community regarding attempts by the administration to gain tighter control over interest rate policies and monetary decisions, a move that Powell warns will lead to a loss of public confidence in the markets.