“Without independent institutions, confidence in markets is broken.”

Gary Gensler, former chairman of the SEC, painted a picture of growing uncertainty and fragility in the US economic and financial system. He stressed the central role of independent institutions in the stability of financial markets and confidence in the economic system. The strength and stability of the US financial system depends crucially on central institutions remaining independent – and not becoming the playground of political interests. Gensler stressed that regulating banks, capital requirements, and monitoring money and credit flows are important tools. Ultimately, however, they remain effective only if the institutions that apply them remain independent and act with integrity.

He warned emphatically against political interference in the work of the US Federal Reserve and other central institutions: “As an investor, one should hope that the Fed remains independent.” Political influence, for example by the president, could severely undermine the credibility and functionality of the Federal Reserve and other authorities.

He described that in the past, US presidents like Richard Nixon publicly emphasised the Fed’s independence, but at the same time tried to exert influence. Gensler ironically clarified this understanding of politics with the phrase: “I respect the independence of the Fed, but I want it to decide independently in my favour.” He warned that such a stance would be dangerous and would undermine market confidence.

He also expressed concern about the future: “If you undermine institutions, it can take a very long time for confidence to return.” He appealed to politicians and society to protect the independence and integrity of key institutions such as the Federal Reserve, the SEC, or the courts, as they provide the foundation for stable markets and a functioning democracy.