Outgoing US Federal Reserve Chairman Jerome Powell on Sunday maintained a staunch defense of the central bank’s need to maintain independence and credibility as it comes under attack from President Donald Trump.
“Like many other institutions, the Fed has passed a stress test,” he said while accepting an award from the John F. Kennedy Library Foundation.
“If any administration finds a way to fire Fed officials over political differences, then future administrations will do that too,” Powell said, in a barely veiled reference to the Trump administration’s attempt to fire Fed Governor Lisa Cook.
“The public would lose confidence that the central bank will make decisions based solely on what is best for all Americans.”
In his second term in office, Trump has frequently criticized and insulted Powell, claiming he was too slow to cut interest rates.
Trump’s Justice Department went so far as to pursue criminal charges against the Fed chair over a building renovation project. The investigation was eventually dropped to smooth the way to Senate confirmation of Powell’s successor.
Separately, Trump also sought to fire Cook over mortgage fraud allegations. The Supreme Court must rule on the legality of the move.
“Our credibility has been built and sustained over many decades, and we have a duty to preserve that invaluable asset for our fellow citizens and for generations to come,” Powell said.
The former Fed chairman received the John F. Kennedy Profile In Courage Award “for defending the independence of the Federal Reserve,” the foundation said.
Powell stepped down as chairman at the end of his term earlier this month and was succeeded by Trump’s nominee, Kevin Warsh.
In an unusual move for outgoing Fed chiefs, Powell chose to stay on the board for the remainder of his term as governor, which ends in 2028. He did so citing threats to the Fed’s independence and promised to keep a “low profile.”
Trump has welcomed Warsh’s takeover of the Fed — after a protracted and divisive Senate confirmation process — and hosted a lavish White House ceremony for his swearing-in.
“Renewal and change is good and I think we’re going to see a new sheriff in town,” Treasurer Scott Bessent said Friday.
Also presented Sunday were the people of Minnesota’s Twin Cities, in recognition of “risking their lives to protect their neighbors and members of the immigrant community from an unprecedented federal law enforcement operation,” the foundation said.
Trump ordered a massive increase in immigration enforcement operations in the “twin cities” of St Paul and Minneapolis earlier this year, resulting in widespread demonstrations and the killing of at least two US citizen protesters and one immigrant.
