Eric Rosengren

Well, given the DOJ subpoenas into Powell, ostensibly into Powell's handling of the renovations of the Fed building, given the Supreme Court arguments scheduled to start next week involving Lisa Cook and the power of the president to actually remove a Fed governor seemingly at will, I am curious, Eric, about this idea

of Fenda independence and whether we should really start looking at this as the beginning of the end, particularly given the comments out of the three former Fed chiefs yesterday, their statement that they signed, the support today that we saw from monetary policy officials overseas, as well as executives like J.P.

Morgan, CEO Jamie Dimon.

Yeah, so Fed independence is critically important.

Normally, losing Fed independence

is something that happens in third world countries, where either they're having trouble managing their deficit and want to get the interest rates down to make it easier to issue debt, or they're trying to get interest rates down because they think it'll help them get elected in the upcoming election.

The Federal Reserve was constructed to be pretty independent from the rest of government, so that this kind of political business cycle doesn't actually occur in the United States.

So to the extent that various actions by the administration undermine the belief that the Fed will stay independent, it will make harder for the next chair to actually lower interest rates, convince people that they are truly independent, and runs the risk if people start becoming concerned that the Fed no longer is going to focus on inflation.

that even if interest rates go down at the short end, the long end will go up as people become concerned that the policies will generate ongoing inflation higher than what we've historically had.

All right, Eric, I have to leave it there.

Always appreciate getting your comments here.