Former US Federal Reserve chair Jerome Powell used one of his first major public appearances since leaving office to defend independent institutions while accepting an award Sunday honouring his efforts to preserve the central bank’s independence.
Speaking at the John F. Kennedy Presidential Library, Powell called universities, courts, Congress and the central bank “the foundation and the embodiment of our democracy” and argued that the Fed’s independence was a “priceless asset” that must be protected.
It was one of his most direct defences of Fed independence, warning that a single administration’s decision to remove bank officials over policy differences would open the way for future elected officials to follow suit, ultimately undermining the credibility that the Fed has spent decades building.
Powell, who frequently clashed with Trump during his eight years as chair, stepped down as his term expired in May. He was succeeded by Kevin Warsh, whom Trump selected to lead the central bank.
After stepping down as chair, Powell took the unusual step of keeping his seat on the Fed’s governing board, which he has until January 2028. By doing so, he has deprived the Trump administration of an opportunity to appoint another member of the board.
The Trump administration has also sought to fire Fed governor Lisa Cook, which would open an additional seat on the rate-setting committee the president could fill. Yet Cook sued and the courts have so far let her keep her seat.
