“The Federal Reserve faces a serious threat to its continued independence.” – David Wessel
As political pressure on the U.S. central bank mounts, questions around the independence of the Federal Reserve have taken on new urgency. At the 2026 Wharton Future of Finance Forum, a panel titled “The Path Ahead for the Federal Reserve” convened former Federal Reserve leaders to assess what’s happening in the current moment, and explore the long-term risks facing the Fed.
Moderated by David Wessel, Director of the Hutchins Center on Fiscal and Monetary Policy and Senior Fellow in Economic Studies at Brookings, the panel featured:
- Patrick Harker, Rowan Distinguished Professor, The Wharton School of the University of Pennsylvania and Former President and CEO, Federal Reserve Bank of Philadelphia
- Donald Kohn, Robert V. Roosa Chair in International Economics, Brookings Institution and Former Vice Chair, Board of Governors of the Federal Reserve System
- Randall Kroszner, Norman R. Bobins Professor of Economics, University of Chicago Booth School of Business and Former Member, Board of Governors of the Federal Reserve System
- Loretta Mester, Adjunct Full Professor of Finance, The Wharton School of the University of Pennsylvania; Senior Scholar, Griswold Center for Economic Policy Studies, Princeton University; and Former President and CEO, Federal Reserve Bank of Cleveland
David Wessel offered these key insights from the panel he moderated:
- Independence Under Pressure: The Federal Reserve faces a serious threat to its continued independence in making monetary policy.
- Getting the Job Done: The Fed should deliver on its mandate, communicate well, and build support in Congress.
- Strain on Monetary Policy: Unsustainable fiscal policy makes the Fed’s job more difficult.
- Bank Supervision: A continued Fed role in supervising banks is key to its ability to handle a financial crisis.
Policymakers, central bankers, and legislators now face the challenge of preserving the Federal Reserve’s independence while ensuring it remains accountable, credible, and effective in a rapidly shifting political and economic landscape.
More Thought Leadership
Listen to a conversation on banking between Professor Itay Goldstein, Loretta Mester, and Hyun Song Shin, economic adviser and head of research at the Bank for International Settlements.
Read Professor Patrick Harker’s op-ed, “When Monetary Policy Is Asked to Do Too Much.”
Learn more about Wharton Future of Finance.
Photography by Eddy Marenco