IMF: Markets still believe in Fed independence, but real risks cannot be ignored
2025-08-28 13:13:22
US President Donald Trump's attempt to oust Federal Reserve governor Tim Cook early this week raised concerns about the government reshaping the Fed's leadership and pushing for interest rate cuts. "Clearly markets still believe that the Fed's independence in setting monetary policy rates, and in particular operational independence, will be maintained," said IMF first deputy managing director Peter Gopinath in a comment on the relative calm in markets. "I think the reality is more worrisome than what the market is doing so far, but we'll have to wait and see."
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