Fed Official Warns: Justice Department Probe Threatens Central Bank Independence

Central Bank Independence Under Scrutiny

A senior Federal Reserve official has raised alarms, stating that the Justice Department's probe into central banking operations crosses the line from oversight into interference. The remark has sparked debate across financial circles.

Inflation Lingers, Labor Market Shows Resilience

While inflation remains above the Fed's 2% target, recent indicators suggest cooling in consumer prices. At the same time, job growth has stabilized, with unemployment holding below 4%, signaling a rebalancing labor market.

Why Policy Autonomy Matters

• Independent central banks can focus on long-term stability, free from political cycles
• Market trust hinges on the perception of impartial, data-driven decision-making
• Global precedents show compromised central banks often lead to economic instability

Experts caution that eroding the Fed’s independence could weaken confidence in U.S. monetary policy, with ripple effects across global capital markets.