Bundesbank warns that loss of Fed independence could drive up global inflation
Bundesbank head Joachim Nagel warns that political pressure on the Fed could hurt central bank independence. This trend risks driving up global inflation.
Bundesbank President Joachim Nagel warned on February 12, 2026, that a potential loss of independence at the U.S. 
US Federal Reserve could raise political pressure on central banks around the world and boost inflation globally. Speaking on the risks facing the international monetary system, Nagel argued that any erosion of autonomy for the American central bank would likely be imitated by politicians in other nations, leveraging the interconnectedness of the global economy to undermine price stability.
US Federal Reserve could raise political pressure on central banks around the world and boost inflation globally. Speaking on the risks facing the international monetary system, Nagel argued that any erosion of autonomy for the American central bank would likely be imitated by politicians in other nations, leveraging the interconnectedness of the global economy to undermine price stability.The warning follows sustained political pressure on the Fed from President Donald Trump and the nomination of former Fed Governor Kevin Warsh to lead the institution. Nagel suggested that such developments could encourage imitation by politicians in other countries, which, combined with the interconnectedness of the world economy, poses a structural risk to global price stability.
