• Financial markets speak their own language and are showing how Fed attacks affect them.
  • Avoid interfering with central bank independence.

Nagel has already mentioned that it's dangerous to play with central bank independence. He's absolutely right because that's what keeps inflation expectations anchored.

If the Fed were to lose independence, we would see long term interest rates surge, the US dollar sink and the stock market probably going into a bear market.

ECB's Nagel
ECB's Nagel
Source: Forex Live