How Fed Independence Crises Reshape Global Investment Strategies
The U.S. dollar’s reign as the world’s dominant reserve currency has long been underpinned by the Federal Reserve’s institutional independence. However, 2025 has marked a pivotal turning point. Political interference in the Fed’s operations—most notably the controversial removal of Governor Lisa Cook and sustained pressure on Chair Jerome Powell—has eroded confidence in the central bank’s autonomy. This erosion is not merely a domestic concern; it signals a broader crisis of U.S. monetary credibility, with cascading implications for global markets.
The Erosion of Fed Independence: A Systemic Risk
The Federal Reserve was designed to insulate monetary policy from short-term political cycles. Yet recent actions by the Trump…
