Former Federal Reserve Chair Jerome Powell warned that the U.S. central bank would lose the credibility essential for a strong and stable economy if any president were allowed to dismiss Fed officials over policy disagreements. In his first public remarks since leaving the top job earlier this month, Powell accepted the John F. Kennedy Profile in Courage Award at the JFK Presidential Library in Boston, emphasizing the importance of safeguarding the Fed's independence.
Powell's Defense of Fed Independence
“If any administration finds a way to remove Fed officials over policy differences, then future administrations will do so as well,” Powell said in prepared remarks. He argued that such actions would erode public trust, causing people to doubt that the Fed makes decisions in the best interest of all Americans. “The Fed’s credibility would be lost. Our credibility has been built and sustained over many decades, and we have a duty to safeguard that priceless asset for our fellow citizens and for generations to come,” he added.
Legal Protections and Political Pressure
Powell highlighted the “straightforward” legal protections designed to insulate monetary policy from political interference. He acknowledged the deep partisan divide in American politics but urged unity around “higher principles that define our nation,” chief among them respect for the rule of law. His comments come as the Supreme Court deliberates the fate of Fed Governor Lisa Cook, whom President Donald Trump has sought to fire over unproven mortgage fraud allegations, which Cook denies.
Powell's Legacy and Ongoing Threats
Powell exited the Fed earlier this month, succeeded by Kevin Warsh, but remains on the Board of Governors until January 2028. His legacy is partly defined by his defense of the central bank against relentless pressure from Trump and allies to lower interest rates, including personal verbal attacks, the attempt to fire Cook, and a sidelined criminal investigation into building-cost overruns. The dispute turned in Powell's favor after he publicly denounced the criminal investigation in January, prompting support from some Republicans.
Award and Recognition
The JFK Library Foundation selected Powell as a co-recipient of the Profile in Courage Award for defending the Fed’s independence “despite years of personal attacks and threats from the highest levels of government.” The foundation also honored the people of Minneapolis and St. Paul for risking their lives to protect neighbors and immigrant community members from a federal law enforcement operation. Past recipients include former Presidents Barack Obama, George H.W. Bush, Gerald Ford, and former Vice President Mike Pence.
