Fitch warns Fed independence is key pillar of U.S. sovereign credit rating

Fitch emphasizes that Federal Reserve independence is a critical element supporting the U.S. AA+ sovereign credit rating. This statement follows pressure from the Trump administration on Fed Chair Powell, raising concerns about potential political influences on the central bank's decision-making. Fitch will closely monitor governance developments and the Fed's ability to maintain low and stable inflation. Similarly, S&P Global warns that any erosion of the Fed's independence could adversely affect the U.S. credit rating. Although markets currently seem undisturbed by political noise, credit agencies view the Fed's autonomy as a crucial institutional anchor for the U.S. credit profile.