United States Federal Reserve

The United States Federal Reserve, the central bank of the US, is currently facing significant scrutiny and challenges. Recent news highlights its struggle to maintain independence amidst political pressure, particularly from President Trump, who has repeatedly called for interest rate cuts. The Fed's decision to hold rates steady at 3.5 to 3.75 percent in January 2026, despite this pressure, underscores its commitment to its own economic assessment. Furthermore, the attempted firing of Fed governor Lisa Cook by Trump has escalated into a legal battle, reaching the Supreme Court. Fed Chair Jerome Powell's attendance at the Supreme Court session signals strong support for Cook and the Fed's independence. In December 2025, the Fed cut interest rates for the third time that year, citing a clouded economic outlook. These events demonstrate the Fed's crucial role in managing the US economy and its ongoing efforts to navigate political interference while making critical monetary policy decisions.