“Trust takes years to build, seconds to break, and forever to repair.”
For decades, the United States has stood as the world’s leading investment destination, built on strong economic fundamentals and a tradition of transparency. Yet today, it faces mounting challenges of an unsustainable fiscal path and persistent inflation. Without solutions, deficits will likely continue to grow, inflation can become unstable, and business investment can weaken.
While the Trump Administration has understandably prioritized inflation, its confrontational approach risks undermining the Federal Reserve’s independence—an institution critical to maintaining economic stability through transparency and objectivity. Political interference, such as public criticism of the Fed or calls to remove governors, threatens the Fed’s ability to make objective decisions. When that independence is compromised, so is the credibility of the entire economic system.
The risks of politicizing monetary policy are not hypothetical. In 2019, Turkey’s President Recep Tayyip Erdoğan appointed central bank officials and used an unorthodox monetary policy for lowering interest rates and curbing inflation. The result was years of runaway inflation, peaking at 75% in 2024. Even after returning to more conventional policies, inflation in Turkey remains elevated at 33%1.
Criticism of the Fed is not inherently harmful, but preserving its autonomy is essential. The administration would be wise to allow the Federal Reserve space to make tough decisions necessary for curbing inflation. Doing so will help safeguard the integrity of the U.S. economy and maintain the trust that has taken generations to build, and ultimately, support the economic climate in which your investment portfolio has the potential to grow.
1(YCharts 2025)