Threats to Federal Reserve Independence

The independence of the Federal Reserve is increasingly under threat, as the potential for outside influence from unconventional groups raises concerns about its decision-making authority. The discussion highlights the fear that interference could destabilize the U.S. dollar, which serves as the global reserve currency and a cornerstone of international trade. For example, the unqualified attempts to audit or reform the Fed, driven by certain high-profile individuals, could lead to disastrous consequences for the global financial system. If the credibility of the Fed were compromised, it would trigger widespread panic and disrupt trade, making it vital to protect its autonomy.