Powell Warns Political Interference Threatens Fed Credibility and Markets

Former Fed Chair Jerome Powell cautioned that political pressure on the Federal Reserve risks undermining its institutional credibility, a cornerstone of stable financial markets. No specific policy changes or rate decisions were announced, but the warning signals growing tension between political actors and the central bank. USD pairs are most exposed, as Fed independence is a key driver of dollar confidence. EUR/USD, USD/JPY, and GBP/USD could see volatility if traders reprice Fed credibility risk, particularly in a environment already sensitive to U.S. policy uncertainty.