The Federal Reserve’s independence is hanging by a thread in the age of Trump

The president's ultimate goal is to push the Fed - among other independent US institutions - to bend to his will

Jerome Powell, who stepped down this week as chair of the Federal Reserve, had his hits and misses. The Fed was late to react as prices started rising when the Covid pandemic abated, but they eventually acted forcefully and achieved the most rare of feats: a soft landing", curbing inflation without sparking a recession or damaging employment.

Strangely, given the chaotic era of pandemic and tariffs that coincided with Powell's time as chair, monetary policy may not define his legacy. Powell's most lasting accomplishment will most likely be his outspoken efforts to defend the independence of the Fed from an assault by the imperial presidency of Donald Trump.