Fed independence is under threat
US central bank faces increasing pressure although monetary policy autonomy looks safe for now
The ability of the US Federal Reserve System to set monetary policy, establish regulatory rules and respond to future financial emergencies free from political interference is under severe threat. And it is unclear if any aspect of the Fed’s autonomy will fully survive the current onslaught from the US executive.
In February, US President Donald Trump signed an executive order asserting that “so-called independent regulatory agencies” need to submit “significant regulatory actions” for review by
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Governance
Trump and Powell’s war of words escalates
Fed chair slams tariffs, while president says Powell’s departure “cannot come fast enough”
Governance Benchmarks 2025 – model banks analysis
Data breakdown highlights independence pressures, capital frameworks and staffing challenges
New Zealand slashes funding to central bank by 25%
Some of RBNZ’s non-legislative functions “appear overstaffed”, says finance minister
Bangladesh Bank officials should face action over theft – minister
Nazrul says previous regime shielded central bank officials from investigation into $101 million hacking
Governance Benchmarks 2025 – executive summary
Data shows strong independence with threats in some areas, and sheds light on staffing, mandates and more
Former Bank of Mauritius governor arrested again
Harvesh Seegolam released on bail after being charged with fraud in embezzlement case
Central bank independence helps price stability – ECB paper
Research shows that greater autonomy means more policy discipline and enhanced credibility
Governance Benchmarks 2025 report – independence amid turbulence
Benchmarks highlight pressures on independence but most say protections are sufficient