For a full year, a widespread belief has persisted that the independence of the Federal Reserve is on the line, and its final days are approaching. According to this narrative, the pressure has reached a point where the central bank's decisions have become a reflection of policy rather than the economy. This perception was based on two pillars. First, the Federal Open Market Committee, which was said to have faced unprecedented political pressure, ranging from continuous public attacks to threats of dismissal, and even a criminal investigation by the Department of Justice against Jerome Powell. The second pillar is the new expected Fed chair, who is widely anticipated to arrive in May 2026 and is highly likely to be a Trump loyalist, thereby completing the 'politicization' of monetary policy. However, both of these pillars...
