Outgoing Fed president issues blunt warning on economy

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Mary Helen GillespieFri, February 27, 2026 at 1:05 AM GMT+1 5 min readAmericans have started to question the independence of the Federal Reserve, a dangerous trend for the future of monetary policy and the nation’s economy, outgoing Atlanta Fed President Raphael Bostic said.The independence of the central bank from politics and partisan infleunce must be safeguarded, Bostic said in an essay published on the Atlanta Fed’s website Feb. 25.Bostic’s last day at the helm there, which he called “the best job I’ve ever had,” is Feb. 28.“The Fed is critical to the nation's well-being,’’ Bostic said. “Its primary duties are to safeguard financial stability and to formulate monetary policy aimed at establishing a foundation for broad prosperity.”Bostic said it’s important that the public understand what is at stake when the Fed's independence is at risk.“Decades of lived experience, as well as a large body of academic research, makes clear that a nation's economic outcomes are better when there is an independent central bank,’’ he said.“Inflation is lower, economic performance is more robust, and consumers and businesses alike are more confident that long-run investments will be worth making,’’ he added.Outgoing Atlanta Fed President Raphael Bostic warns political pressure on the Federal Reserve threatens independence, inflation control, and long-term U.S. growth.Getty · GettyThe Fed system includes 12 regional bank presidents, along with the Washington-based Board of Governors, appointed by the president and led by the influential chair of the central bank.The regional presidents rotate voting duties on monetary policy on the Federal Open Market Committee. All participate in debate at the regular policy-setting meetings, typically held about every six weeks.The central bank’s independence from pressure from the executive branch has reached several inflection points during the second Trump administration.The Fed has faced intense criticism over the past year from President Donald Trump, Treasury Secretary Scott Bessent, and other administration officials who want interest ratesdramaticallylowered to 1% or less.The president has attempted to fire Fed Governor Lisa Cook over unsubstantiated mortgage fraud allegations. Cook is challenging the effort through the federal courts, most recently in a hearing before the Supreme Court, whose ruling is expected this spring.The Department of Justice served the Fed with criminal subpoenas related to congressional testimony Chair Jerome Powell gave about the central bank’s ongoing $2.5 billion building renovation. Powell has said the unprecedented probe is part of the Trump administration’s efforts to influence monetary policy.White House National Economic Council Director Kevin Hassett said a team of New York Fed economists should be "disciplined" for recent tariff research, which showed that American consumers and businesses pay nearly 100% of the administration’s global tariffs.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,878.88 -29.98 (-0.43%)Dow 3048,977.92 -521.28 (-1.05%)Nasdaq22,668.21 -210.17 (-0.92%)Russell 20002,632.36 -44.93 (-1.68%)VIX19.86 +1.23 (+6.60%)Gold5,247.90 +53.70 (+1.03%)Trending tickersBTC-USD Bitcoin USD 63,245.13 -4,415.39 (-6.53%)ANTH.PVT Anthropic 259.14 0.00 (0.00%)NBIS Nebius Group N.V. 91.19 -13.69 (-13.05%)WFC Wells Fargo & Company 81.45 -4.85 (-5.62%)BX Blackstone Inc. 113.37 -4.58 (-3.88%)PortfolioSign in to access your portfolioSign inTop gainersAAOI Applied Optoelectronics, Inc. 84.23 +30.54 (+56.88%)BWIN The Baldwin Insurance Group, Inc. 23.23 +4.74 (+25.64%)FIGS FIGS, Inc. 15.45 +2.98 (+23.90%)DELL Dell Technologies Inc. 148.08 +26.63 (+21.93%)PSKY Paramount Skydance Corporation 13.51 +2.33 (+20.84%)Top losersRUN Sunrun Inc. 13.25 -7.17 (-35.11%)FIGR Figure Technology Solutions, Inc. 25.28 -8.76 (-25.73%)CRWV CoreWeave, Inc. 79.56 -18.07 (-18.51%)ACA Arcosa, Inc. 107.48 -20.02 (-15.70%)TPC Tutor Perini Corporation 75.37 -14.01 (-15.67%)Most activeNVDA NVIDIA Corporation 177.19 -7.70 (-4.16%)NFLX Netflix, Inc. 96.24 +11.63 (+13.75%)SOFI SoFi Technologies, Inc. 17.76 -1.34 (-7.02%)PLUG Plug Power Inc. 1.7900 -0.1200 (-6.28%)NU Nu Holdings Ltd. 14.98 -0.08 (-0.53%)Top economic eventsEarnings eventsMy earnings eventsEarnings events