The US Federal Reserve held interest rates steady under Jerome Powell, citing inflation concerns from the West Asia war and a robust US economy. This decision was made despite President Trump's pressure for cuts. With Powell departing, attention shifts to Kevin Warsh, Trump's nominee for Fed chair, and whether he will maintain independence. The author emphasizes that any perceived capitulation to political pressure will severely damage the Fed's credibility, especially as room for rate cuts diminishes amid ongoing conflict. The world is watching to see if the Fed's critical autonomy remains intact against political influence.