Former Fed officials: Markets still trust Fed independence

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• Key Insight:  A panel of former Federal Reserve officials discussed the implications of a probe into Fed Chair Jerome Powell, saying the market’s muted reaction reflected political pushback against a potential indictment.
• Expert Quote:  “Markets think these institutions will be strong enough to withstand these types of shocks.” — Randall Kroszner, former Fed governor.
• What’s at stake: The central question is whether the Federal Reserve can remain independent from political influence. Panelists and lawmakers warn that a forced removal of Powell or Fed Gov. Lisa Cook could undermine confidence in the Fed and its ability to set monetary policy based on economic conditions rather than political priorities.

Former Federal Reserve officials say the market’s measured…