Why does central bank independence matter so much? Here's the thing—once policymakers start tailoring monetary decisions around election cycles or immediate fiscal pressures, you lose the institutional discipline that keeps inflation in check. When political considerations start driving rate decisions instead of inflation targets, you inevitably end up with more loose money chasing the same goods. That's when inflation spirals. The crypto market watches this stuff closely because it directly impacts how aggressively central banks tighten or loosen monetary policy. Separated from electoral politics, a truly independent Fed can make the unpopular calls that actually cool down price pressures. The moment that independence erodes? That's when you see sustained inflation become the real problem.