Fed Independence and Political Tensions Minneapolis Fed President Neel Kashkari has addressed rising friction between the Trump administration and the Federal Reserve, characterizing the conflict as a fundamental disagreement over monetary policy. Kashkari expressed firm support for Chair Jerome Powell following a Justice Department investigation, emphasizing that the central bank must operate without political interference. Maintaining the autonomy of the Fed is a primary concern for officials. Kashkari warned that sustained political pressure could undermine the institution's independence, which is viewed as a cornerstone of national economic stability. Despite the escalating rhetoric, market volatility has remained limited. Investors appear bolstered by bipartisan support in Congress and a prevailing legal consensus. Most analysts expect the Supreme Court to eventually uphold the Federal Reserve’s distinct legal status, shielding it from direct executive control.