Powell Warns on US Fed Independence Under Political Pressure
According to reports, Powell, who completed his tenure as Fed chair on May 15 and now serves as a member of the Federal Reserve Board of Governors, said the institution is being subjected to a significant political challenge under the Trump administration. He noted that other major American institutions, including universities and the judiciary, are facing similar pressures.
Speaking in Boston on Sunday after receiving the Profile in Courage Award from the John F. Kennedy Library Foundation, Powell warned that removing Federal Reserve officials because of policy disagreements could have long-term consequences for the institution's credibility and autonomy.
“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.”
According to reports, Powell highlighted concerns over growing pressure from the White House calling for his resignation, as well as a criminal investigation by the Justice Department related to the Federal Reserve’s $2.5 billion headquarters renovation project in Washington. He also referenced efforts aimed at removing Federal Reserve Governor Lisa Cook.
The former chair suggested that actions perceived as politically motivated could weaken confidence in the central bank’s impartiality and set a precedent that may affect future administrations and Federal Reserve leadership.
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