Overview

• Officials from Europe to Japan said a weakened Fed could set a precedent that puts their own autonomy at risk and rattles financial stability.
• Jerome Powell signaled a possible September rate cut and received a standing ovation from attendees at the Jackson Hole symposium.
• Some central banks have urged lenders to monitor their exposure to the U.S. dollar as they prepare for potential spillovers.
• Trump has pressed Powell to resign, targeted Governor Lisa Cook through a criminal referral, and nominated White House economist Stephen Miran to the Fed.
• Economists and policymakers warned that investors could demand higher premiums on U.S. Treasuries and question the bond market’s safe‑haven status if independence erodes.