Outgoing U.S. Federal Reserve Chair Jerome Powell has mounted a strong defense of the central bank's independence, warning that political interference could undermine public confidence in monetary policymaking, according to a report by AFP.
While accepting an award from the John F. Kennedy Library Foundation on Sunday, Powell said the Federal Reserve, like many other institutions, has faced significant challenges in recent years. According to AFP, he argued that allowing administrations to remove Fed officials over policy disagreements would set a precedent that could erode the central bank's ability to make decisions in the broader public interest.
Powell's remarks come amid escalating tensions between the Federal Reserve and President Donald Trump, who has repeatedly criticized the central bank's leadership during his second term. Trump has accused Powell of moving too slowly to cut interest rates and has frequently targeted the Fed's policy decisions.
Trump administration also sought to remove Fed Governor Lisa Cook over allegations related to mortgage fraud, a move whose legality is currently under review by the U.S. Supreme Court. In addition, the Justice Department pursued a criminal investigation into Powell over a Federal Reserve building renovation project, although the probe was eventually dropped as the administration sought to facilitate the Senate confirmation of Powell's successor.
Powell emphasized that the Federal Reserve's credibility has been built over decades and must be protected for future generations. The John F. Kennedy Library Foundation honored him with the Profile in Courage Award for his efforts to safeguard the independence of the central bank.
Powell stepped down as Fed chair earlier this month after completing his term and was succeeded by Trump nominee Kevin Warsh. In an unusual decision for a former Fed chair, Powell chose to remain on the Federal Reserve Board as a governor until his term expires in 2028. He cited concerns about threats to the institution's independence and indicated that he intends to maintain a low public profile.
The transition to Warsh's leadership has been welcomed by the Trump administration following a lengthy and contentious Senate confirmation process. The White House hosted a ceremonial swearing-in event for the new Fed chair, while senior administration officials signaled expectations of a different approach at the central bank.
The Profile in Courage Award was also presented to residents of Minnesota's Twin Cities, St. Paul and Minneapolis. According to AFP, the foundation recognized community members for protecting neighbors and immigrant residents during a large-scale federal immigration enforcement operation ordered by the Trump administration earlier this year.
The immigration crackdown triggered widespread protests across the region. The demonstrations were marked by violence that resulted in the deaths of at least two U.S. citizens and one migrant.
