The Federal Reserve’s Six Big Challenges in 2026: Bill Dudley

In coming months, markets will undoubtedly obsess over President Donald Trump’s choice to lead the Federal Reserve and whether this will give him the control he seeks over interest rates. Yet that’s not the only challenge the world’s most powerful central bank will face in 2026.

I see six big ones.

1) Independence. Markets are right to worry. If President Trump manages to undermine faith in the Fed’s commitment to containing inflation, the repercussions could be disastrous. That said, even if the next Fed chair wants to lower interest rates further in line with Trump’s preferences, that outcome is far ...