Washington Growing scrutiny is emerging over the U.S. Treasury Department’s role in the selection of the Federal Reserve Chair, with critics warning that increased influence could undermine the Fed’s long-standing independence. Economists and lawmakers across party lines say any perception of political pressure risks eroding market confidence and the credibility of U.S. monetary policy.
Supporters argue coordination between the Treasury and the Fed is necessary during periods of economic uncertainty, while opponents stress that the central bank’s autonomy is essential to controlling inflation and maintaining financial stability.
The debate comes amid heightened economic volatility and renewed attention on how top financial leaders are chosen.
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