Former Fed Chairman Jerome Powell speaks out in defense of the independence of the US central bank.
Recently, former Federal Reserve Chairman Jerome Powell delivered a strong speech defending the need to maintain the independence and credibility of the central bank, amidst increasing pressure from the Trump administration.
Speaking upon receiving the award from the John F. Kennedy Library Foundation on May 31 (local time), Powell emphasized: "Like many other institutions, the Fed is undergoing a stress test."
The former Fed chair issued a warning: "If any administration finds a way to remove Fed officials simply because of policy disagreements, then future administrations will do the same." Observers interpreted this comment as an allusion to the Trump administration's efforts to remove Fed Governor Lisa Cook.
According to Powell, if that scenario were to occur, "the public would lose confidence in the central bank's ability to make decisions based on the best interests of all Americans."
During his second term, President Donald Trump frequently criticized Powell, accusing the former Fed chairman of being too slow to cut interest rates.
Tensions escalated when the Justice Department under Trump considered criminal charges against Powell related to a building renovation project.
In addition, the Trump administration is also attempting to remove Governor Lisa Cook from office over allegations of mortgage fraud. The U.S. Supreme Court is currently preparing to rule on the legality of this move.
Defending the legacy and reputation of the world's largest monetary policy authority, Powell affirmed: "Our reputation has been built and maintained over decades. We have a duty to protect that invaluable asset for our people and for future generations."
Earlier this month, Powell officially stepped down as Fed Chairman at the end of his term, handing over the reins to Kevin Warsh, President Trump's nominee.
However, in a rare move for former Fed chairmen, Powell decided to remain on the Board of Governors until his term as governor ends in 2028. He explained this decision as a response to threats to the Fed's independence and pledged to maintain a "low profile" in the future.
The John F. Kennedy Library Foundation stated that Powell was awarded the "Courageous Record" award to honor his efforts in "defending the independence of the Federal Reserve."
In Washington, President Trump welcomed Warsh's appointment to the Fed after a lengthy confirmation process in the Senate, and held a grand inauguration ceremony at the White House. Commenting on the event, U.S. Treasury Secretary Scott Bessent stated: "Innovation and change are good things, and I think we're about to see a new leader here."
