Fed independence erosion to be negative for US credit rating: Fitch

London: A major erosion of the Federal Reserve's independence would be negative for the US credit rating, Fitch's top sovereign analyst said on Thursday, with any sign that the dollar's top global currency crown could slip the most critical issue. The independence of the Fed has been thrown squarely into the spotlight this week after US prosecutors launched an investigation into the central bank's head Jerome Powell over cost overruns to refurbishment work at its headquarters. "A situation where you had complete politicization of a central bank would be credit negative," Fitch's head of sovereign ratings James Longsdon said, explaining that it was a principle that stood for all countries, not just the US. What matters for the (U.) rating is strong conviction in the strength of the dollar as a reserve currency, and therefore in the financial flexibility of the US."