Trump's making a direct effort to undermine the Fed's independence, says Roger Ferguson

Fed Independence & Monetary Policy - Undermining the Fed's independence, established 90 years ago in 1935, poses a threat to its core function of setting monetary policy [2][3] - An independent central bank is crucial for maintaining a strong dollar and trust in US Treasuries as safe haven investments [5][6] - The Fed's primary legal obligation is to maintain purchasing power by controlling inflation, benefiting all citizens, especially low and moderate-income Americans [10][11] Potential Risks & Concerns - The editorial suggests potential risks if political influence compromises the Fed's independence, potentially impacting the US dollar and Treasury security [4][5][9] - Undermining Fed independence could lead to long-term threats to the health and viability of the US dollar and the US Treasury [9] Fed's Evolution & Adaptability - The Fed is continuously rethinking its monetary policy framework, with recent changes announced by Chair Powell [8] - While modernization is possible, maintaining an independent central bank remains the main goal [7][9]