NEC Director Hassett says there is still work to do to restore Fed independence

The operative transmission is the composition of the Board and the chair succession: public framing of sitting policymakers as out of step has historically preceded efforts to reshape the institution, and the term premium and the front end have tended to price perceived politicisation risk asymmetrically, more in inflation compensation and curve steepening than in the near-term policy path. The reference to Warsh's priorities signals the succession contest is live, and past episodes of contested Fed leadership have made the confirmation calendar and the nominee's stated reaction function the key tells. A distinction worth drawing is between pressure aimed at the level of rates, which front-end pricing can absorb, and pressure aimed at the institution's credibility, which historically shows up in breakevens and the dollar's risk premium. Follow-ons are further White House commentary on sitting governors, any formal nomination steps, and whether other officials echo the independence framing.