Saul Eslake: Lael Brainard Dismissal Marks White House Escalation That Endangers USD Safe‑Haven Status

Former Merrill Lynch Australia chief economist Saul Eslake said the dismissal of Federal Reserve Governor Lael Brainard reflects a clear uptick in White House intervention in monetary governance, interpreting the move as part of a broader executive push to reshape federal institutions rather than routine personnel change.

Eslake emphasized that preserving Federal Reserve independence underpins market perceptions of US policy credibility, which in turn supports the safe-haven status of US Treasuries and the US dollar. Any erosion of that independence can raise risk premia and reduce investor confidence in government debt markets.

He also noted that loyalty appears to be an increasing criterion for senior appointments, a development that, according to Eslake, warrants close attention from market participants and fixed-income strategists assessing shifts in institutional policy frameworks.