What’s at Stake in the Fight Over the Federal Reserve’s Independence

For decades, economically advanced countries have recognized the independence of central banks as a necessary safeguard enabling expert policymakers to set interest rates based on the economy’s needs. In a striking challenge to that tradition, US President Donald Trump has exerted relentless pressure on the Federal Reserve.

Trump has repeatedly criticized Fed Chair Jerome Powell for interest rates that are higher than he’d like. He tried to fire Fed Governor Lisa Cook after an administration official accused her of committing mortgage fraud; she denies the charge, and the Supreme Court blocked her dismissal. Trump has publicly flirted with the possibility of removing Powell, whose term as chair ends in May.