For example, Trump has asserted that all interpretations of law and review of agency expenditures, including by the Fed, fall within the purview of the White House and Justice Department. The administration also has taken control of all Fed regulatory policy, including its oversight of bank capital and leverage. The White House may claim that its control does not apply to the institution’s conduct of monetary policy, but this is a distinction without much difference. The Trump administration’s approach to global alliances and tariffs, though, has created uncertainty about its willingness, when needed, to backstop global dollar liquidity. Substantively, though, the Fed’s independence has already been eroded by White House oversight and Trump’s politicisation of interest-rate decisions.

Source: The Star January 15, 2026 05:21 UTC