Fed's Powell warns Trump's political 'stress test' will wreck public trust in central bank
Jerome Powell said White House pressure on the Fed will damage public trust in the U.S. central bank.
TL;DR
- Jerome Powell received the 2026 John F. Kennedy Profile in Courage Award in Boston.
- Powell warned that political pressure on the Federal Reserve, like that from the Trump administration, will damage public confidence in its independence.
- He cited the White House's push for his resignation, a criminal investigation, and attempts to fire Fed Governor Lisa Cook as examples.
- Powell stated that if administrations can remove Fed officials over policy disagreements, future administrations will do the same.
- A federal probe into the Fed's headquarters renovation, initiated due to Trump's frustration with interest rate policy, was dropped.
- Powell stressed that democratic institutions are difficult to build but can be destroyed quickly.
- Kevin Warsh replaced Powell as Fed Chair on May 22nd, though Powell remains a Fed governor.