Outgoing Federal Reserve Chairman Jerome Powell on Sunday staunchly defended the need for the central bank to maintain its independence and credibility as it comes under attack from President Donald Trump.
“The Federal Reserve, like many other institutions, is constantly being stress-tested,” he said while accepting the award from the John F. Kennedy Library Foundation.
“If any administration finds a way to remove Fed officials over policy disagreements, future administrations will do the same,” Powell said, making a thinly veiled reference to the Trump administration’s attempt to fire Fed Governor Lisa Cook.
“The public will no longer trust central banks to make decisions only based on what is best for all Americans.”
During his second term, Trump frequently criticized and insulted Powell, accusing him of cutting interest rates too slowly.
Trump’s Justice Department even filed criminal charges against the Federal Reserve chairman over a building renovation project. The investigation was eventually dropped, paving the way for the Senate to confirm Powell’s successor.
Separately, Trump is seeking to oust Cook over mortgage fraud allegations. The Supreme Court will rule on the legality of the move.
“Our credibility has been built and sustained over decades, and we have a responsibility to protect this priceless asset for our fellow citizens and for future generations,” Powell said.
The foundation said the former Fed chairman received the John F. Kennedy Courage Award “for protecting the independence of the Fed.”
Powell resigned as chairman when his term ended earlier this month and was succeeded by Trump nominee Kevin Warsh.
For his part as outgoing Fed chairman, Powell has chosen to stay on the board for the remainder of his term as a governor, which ends in 2028. He did so on the grounds that the Fed’s independence was at risk and promised to keep a “low profile.”
Trump welcomed Warsh, who took over the Fed after a lengthy and divisive confirmation process in the Senate, with a lavish swearing-in ceremony for him at the White House.
“Updates and changes are good, and I think we’re going to see a new sheriff in town,” Treasurer Scott Bessant said Friday.
Also honored on Sunday were “the people of Minnesota’s Twin Cities” for “risking their lives to protect their neighbors and immigrant community members from unprecedented federal law enforcement actions,” the foundation said.
Trump earlier this year ordered a massive increase in immigration enforcement in the Twin Cities of St. Paul and Minneapolis, leading to massive demonstrations and the killings of at least two U.S. citizen protesters and one immigrant.
Aha/SLA/DW
