Watch CNBC's full interview with former Treasury Secretary and former Fed Chair Janet Yellen

Fed Independence and Political Pressure - Markets rely on the Fed's independence and commitment to price stability and maximum employment [3] - Historical examples show that presidential pressure on the Fed can lead to stagflation [6][7] - Concerns exist regarding potential Fed chair candidates expressing opinions on future monetary policy [17] - A "shadow Fed chair" is a dangerous idea that impairs the credibility of the actual Fed chair [23][24] Economic Outlook and Policy Concerns - The economy is resilient, but concerns exist about future tariff policies [25][26] - Tariffs could lead to increased inflation and decreased household incomes [27][29] - Softness is developing in the labor market, with average job creation around 150,000 jobs per month [28] - Concerns exist about weaknesses in the legislation regarding stable coins and their potential financial stability risks [34] Monetary Policy and Inflation - The Fed's goal is price stability, aiming for 2% inflation, and maximum employment [3][12][15] - Lowering interest rates to ease financing costs on federal debt is not a congressionally mandated goal and is dangerous [3][15] - High inflation is an inevitable consequence when pressure drives monetary policy [3] Fed Leadership and Transition - The President should choose a Fed chair who believes in and will defend the Fed's independence [14] - The next Fed chair should make fact-based judgments based on economic trends and the congressionally mandated goals [15] - The current Fed chair is committed to the Fed's independence and should fulfill his term [31][32]