independence

According to an article by "Federal Reserve Mouthpiece" Nick Timiraos, in a speech on Sunday evening local time, former Federal Reserve Chairman Powell stated that if any administration finds an excuse to dismiss Federal Reserve officials simply due to policy disagreements, the Federal Reserve will not be able to survive. Powell currently serves as a Federal Reserve Governor. While speaking generally about topics such as institutions and the rule of law, he did not name any specific president or express any personal grievances. However, when discussing the institutional framework designed to keep monetary policy decision-making power out of presidential control, his wording was extremely precise.Powell emphasized the legal protections aimed at preventing Federal Reserve officials from being arbitrarily dismissed and specifically pointed out that the executive branch "does not play any role in selecting or overseeing the 12 regional reserve bank presidents," who, along with the Federal Reserve Governors, vote together to determine interest rates. "If any administration finds an excuse to dismiss Federal Reserve officials simply due to policy disagreements, then future administrations will surely follow suit," Powell said.He noted that the credibility built up by the Federal Reserve over decades is an "invaluable asset," and he and his colleagues "have a responsibility to defend it."

According to Jinshi reports, Federal Reserve's Goolsbee stated that without the independence of the central bank, inflation will return.

According to Jin Shi reports, the U.S. Congress will hold a confirmation hearing for Federal Reserve Chair nominee Waller on Tuesday local time. Waller has pledged to maintain strict independence on interest rate issues. He stated that interest rate decisions must be independent of political considerations, monetary policy should not be a tool for short-term political goals, and emphasized that the credibility of the Federal Reserve comes from institutional constraints and policy discipline. Waller also warned against extending the central bank's functions into areas of fiscal policy or social policy where it lacks statutory authority.

According to Jinshi reports, Federal Reserve Chair nominee Waller stated that he will firmly commit to maintaining strict independence on interest rate issues.

According to Jinshi reports, Federal Reserve's Goolsbee stated that the independence of the central bank is crucial for controlling inflation.

Atlanta Federal Reserve President Bostic said on Wednesday that the rift between the Federal Reserve and the White House has begun to erode public trust in the central bank's political independence. This is one of the most direct warnings yet from senior monetary policy officials about the consequences of Trump's tough stance on the Fed.In his farewell article, Bostic stated that his colleagues within the Fed system remain committed to keeping their work separate from politics. "But my visits over the past few months have made it clear that the legal and rhetorical battles surrounding the central bank have led people from all walks of life to begin questioning the Fed's independence, which is deeply concerning." Bostic is not the only Fed official this year to emphasize the importance of central bank independence, but no one has warned as directly as he did on Wednesday that the current series of controversies could undermine public trust in the institution.

According to Cointelegraph, the President of the German Central Bank, Joachim Nagel, stated that stablecoins pegged to the euro would provide Europe with more independence, allowing it to move away from dollar-pegged stablecoins that are set to be approved under the "GENIUS Act."Joachim Nagel, the President of the Deutsche Bundesbank (German Central Bank), supports the launch of a central bank digital currency pegged to the euro as well as payment-type stablecoins denominated in euros. In a preparatory speech at the American Chamber of Commerce's New Year reception in Frankfurt on Monday, Nagel mentioned that EU officials are "working hard" to advance the rollout of retail central bank digital currencies. He believes that euro-denominated stablecoins will also help "make Europe more independent in terms of payment systems and solutions.""It is worth noting that wholesale central bank digital currencies will enable financial institutions to make programmable payments using central bank money," Nagel stated. "I also see the value of euro-denominated stablecoins, as they can allow individuals and businesses to make cross-border payments at a low cost."Nagel's remarks come months after U.S. President Trump signed a bill to establish a regulatory framework for payment-type stablecoins in the country. This legislation could pose a challenge to any potential euro-pegged stablecoins. The law is expected to be fully implemented 18 months after signing or 120 days after relevant regulations are finalized. The German central bank president's comments on stablecoins did not mention the risks he referred to at the Euro50 Group meeting last week.Nagel warned that if the market share of dollar-denominated stablecoins significantly exceeds that of euro-pegged stablecoins, domestic monetary policy "could be severely compromised, not to mention that Europe's sovereignty could be weakened."

According to the Associated Press, Federal Reserve Chairman Jerome Powell will attend the U.S. Supreme Court's oral arguments regarding Federal Reserve Governor Christopher Waller on Wednesday, marking an unusual public statement and support from the head of the U.S. central bank. The Supreme Court is reviewing whether President Trump has the authority to dismiss Waller, who was appointed by former President Biden.Sources indicate that Powell plans to attend Wednesday's hearing. This also represents Powell's most public and direct support for Waller to date, as Trump first attempted to remove Waller in late August of last year.Previously, Powell revealed that the Trump administration had issued subpoenas to the Federal Reserve and threatened to bring unprecedented criminal charges against it. In a video statement released on January 11, Powell condemned these subpoenas as merely an "excuse," with the real aim of forcing him to significantly lower the Federal Reserve's benchmark interest rate.

According to Jinshi reports, the U.S. Department of Justice has launched a criminal investigation into Federal Reserve Chairman Powell, raising concerns among global central banks about the potential risks to the independence of the Federal Reserve. This not only pertains to the direction of U.S. monetary policy but also directly threatens a key crisis tool for the global financial system—currency swap agreements. Analysts point out that if the U.S. ties swap agreements to geopolitical interests, the global crisis response capability will face severe challenges.

According to Jinshi reports, ECB Governing Council member Kazaks stated that if the independence of the Federal Reserve is weakened in any way, this effect is likely to be transmitted to ordinary consumers in the United States through higher inflation rates, which will subsequently lead to rising interest rates to curb inflation.

According to Jinshi News, Alexandra Elysando, Co-Chief Investment Officer of Global Multi-Asset Solutions at Goldman Sachs Asset Management, stated that the CPI data released today is a welcome piece of hard data. However, as the market increasingly focuses on the risks to the independence of the Federal Reserve, inflation data may shift from being a primary market trigger to a background constraint. Goldman Sachs still prefers to go long on risk assets, avoiding the pursuit of short-term news trends, and instead focusing on themes that are sustainable and tradable.

According to Jinshi, former U.S. Treasury Secretary Yellen stated that the investigation by Federal Reserve Chairman Powell is "extremely concerning," and the market should pay attention to the independence of the Federal Reserve.

According to Jinshi News, UBS Chief Economist Paul Donovan wrote that a criminal investigation against the sitting Federal Reserve Chairman could actually help strengthen the independence of the central bank. Market reactions indicate that investors' concerns about the Fed's ability to manage interest rates without political interference are rising. Although asset prices are generally stable, long-term U.S. Treasury yields are rising, and the dollar is weakening. Donovan stated that Powell's tough stance may suggest he is unwilling to resign from his position as a Federal Reserve Governor this year.

According to Jinshi News, Francesco Pesole, a foreign exchange strategist at ING, stated in a report that the dollar faces a significant risk of decline after Federal Reserve Chairman Jerome Powell mentioned that the Federal Reserve received a subpoena from the U.S. Department of Justice due to cost overruns on headquarters renovations.He pointed out that this move has reignited concerns about the independence of the Federal Reserve and may trigger the "sell-America" trade once again. Pesole noted that any further attempts to intervene in the independence of the Federal Reserve would pose considerable downside risks to the dollar.

According to Jinshi News, Goldman Sachs Chief Economist Jan Hatzius stated that the latest news regarding the criminal investigation of Federal Reserve Chairman Jerome Powell will intensify concerns about the independence of the Federal Reserve.He expects that the FOMC will continue to make interest rate decisions based on its statutory responsibilities and economic data.