Jay Powell warns the Federal Reserve is undergoing a stress test

Jerome Powell warns that the Fed's credibility is at risk

Jerome Powell, in his first post-chair remarks, warned that the Fed is undergoing a "stress test" of its credibility, citing political pressure including attempted removal of governor Lisa Cook and a criminal investigation of the Fed's renovation. For tech and business leaders, Fed independence directly affects rate-setting stability: politicized monetary policy raises macro uncertainty, increasing cost-of-capital risk for M&A, growth investment, and multi-year budget planning.