Concerns Raised About Potential Impact on Federal Reserve Independence

Stephen Harmalik, Chief Economist at Economics Unchained, expresses concern over the weakening of central bank independence as a fundamental pillar of global financial stability since the early 1990s. According to him, potential dismissals and subsequent appointments of Federal Reserve Governors under President Donald Trump’s direction could disrupt market confidence. This might lead to increased bond yields, which are vital for managing U.S. government debt.