Johns Hopkins political scientist Nicolas Jabko explains the history of political interference at the Federal Reserve and why its independence is critical for the national and global economy. Why is the Federal Reserve's independence considered to be so important for the nation and the world? Other countries expect the Fed to ensure U.S. economic stability, but also global economic stability—especially in times of crisis. When has the Federal Reserve's independence been challenged in the past and what were the results? As chair, Volcker strongly asserted the independence of the Fed, by raising interest rates to unprecedented levels.