World Business Report Is the White House at war with the Federal Reserve?
Jan 12, 2026
Loretta Mester, a former president of the Federal Reserve Bank of Cleveland, discusses the impacts of political pressures on central bank independence. Paul Winfrey, ex-deputy assistant to Trump, shares insights on Fed reforms and critiques inflation policies. Peter Jankowskis analyzes market reactions amid potential Fed changes. Mariana Parraga highlights Cuba's energy crisis as it grapples with halted Venezuelan oil shipments. Lastly, Kurt Wagner examines how Meta's new hire signals Big Tech's shifting dynamics with U.S. politics.
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Fed Independence Under Direct Threat
- Jerome Powell framed the subpoenas as an attack on Fed independence and warned against political pressure shaping monetary policy.
- Loretta Mester and others echoed that criminal probes risk undermining evidence-based rate decisions and market credibility.
Culture Keeps Politics Out—Until It Doesn't
- Loretta Mester stressed the Fed's culture of decision-making focused solely on economic evidence inside the FOMC room.
- She warned that presidential attacks raise the risk politics could seep into policy and erode credibility.
Push For Structural Fed Reforms
- Paul Winfrey called for debating structural reforms around monetary policy and bank regulation rather than politicising the Fed.
- He recommended considering whether Treasury or the Fed should lead bank regulation and adding guardrails to restore trust.