Goldman Sachs – Fed Independence: How Concerning?, May 2025

The main theme of the report concerns the independence of the US Federal Reserve and potential threats to this independence.

The report discusses the consequences of President Trump's criticism and actions aimed at changing the rules that protect the Fed's independence. Key findings include the importance of Fed independence for achieving better economic outcomes, such as reducing inflation. Threats to Fed independence, including the possibility of removing Fed officials without cause, are discussed. The report also assesses how reduced Fed independence could impact assets like the US dollar and Treasury bonds and how it might increase the attractiveness of gold.