Jerome Powell used his first public appearance since the conclusion of his term as Federal Reserve chairman to take a barely veiled swipe at the Trump administration for what he perceived as a threat to the central bank’s independence.
In a Sunday night speech during an award ceremony at the John F. Kennedy Library Foundation in Boston, Powell did not mention Trump by name but clearly referred to the challenges that the administration placed on the central bank.
“Like many other institutions, the Fed has been undergoing a stress test,” Powell said in accepting the 2026 John F. Kennedy Profile in Courage Award. “Congress wisely chose to insulate monetary policy decisions from political pressure. All other advanced economy nations have done the same. Our federated structure is a bit complex, but the legal protections that support the non-political conduct of monetary policy are straightforward. Fed governors and Reserve Bank presidents hold office with legal protection against removal. We serve long terms unrelated to the four-year presidential election cycle.”
Powell also made reference to a new effort by the Fed’s Office of the Inspector General to review the process that the Fed’s board of governors approves the reappointment of regional Fed leaders. Powell has opted to stay on the board of governors since being replaced as chairman by Kevin Warsh.
“When a new administration takes office, its role is to fill vacancies on the Board of Governors, and for Chair and Vice Chair, as and when they arise, subject in all cases to Senate confirmation. Administrations play no role in the selection or oversight of the 12 Reserve Bank presidents,” he continued. “These protections have served the public well, and administrations from both parties have respected them.”
Powell also referenced the administration’s efforts to remove Fed Gov. Lisa Cook amid accusations that she committed mortgage fraud. Cook has not been charged with any crime, and she brought the administration’s actions to the Supreme Court, which is expected to rule on her complaint this month.
“If any administration finds a way to remove Fed officials over policy differences, then future administrations will do so as well,” Powell said. “The public would lose faith that the central bank will make decisions based only on what’s best for all Americans. The Fed’s credibility would be lost. That credibility enables the Fed to support a strong and stable economy for the benefit of American families and businesses. 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.”
Photo of Jerome Powell during the award ceremony, courtesy of the John F. Kennedy Library Foundation
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