Former Federal Reserve Chair Jerome Powell used a major public appearance on Sunday to speak out in support of independent institutions while accepting an award that recognised his efforts to protect the Federal Reserve from political influence.
Speaking at the John F. Kennedy Presidential Library overlooking Boston Harbor, Powell described universities, courts, Congress and the Federal Reserve as “the foundation and the embodiment of our democracy.” He said the Fed’s independence was a “priceless asset” and stressed that it must be protected.
The speech marked one of Powell’s strongest public defenses of the central bank’s independence. He warned that if one administration succeeds in removing Federal Reserve officials simply because of policy disagreements, future elected leaders could do the same. According to Powell, that would damage the credibility the Fed has spent decades building.
‘The Fed has been undergoing a stress test’
Although Powell never mentioned Trump by name during his remarks, he repeatedly returned to the theme of shielding institutions from political pressure and maintaining public confidence in them.
“Like many other institutions, the Fed has been undergoing a stress test,” he said. “Congress wisely chose to insulate monetary policy decisions from political pressure. All other advanced economy nations have done the same.”
“If any administration finds a way to remove Fed officials over policy differences, then future administrations will do so as well,” Powell added. “The public would lose faith that the central bank will make decisions based only on what’s best for all Americans.”
In his second term, Trump repeatedly targeted Powell, accusing him of being too slow to cut interest rates and openly criticizing his handling of monetary policy. At one point, Trump’s Justice Department even pursued criminal charges against Powell over a Federal Reserve building renovation project. However, the investigation was later dropped.
The John F. Kennedy Profile in Courage Award has been presented since 1989 to public servants who make difficult decisions based on conscience, even when those decisions come with personal or professional risks. When announcing the honour in March, the Kennedy Foundation said Powell was being recognised for protecting the Federal Reserve’s independence “despite years of personal attacks and threats from the highest levels of government.”
Past recipients include Barack Obama, George H. W. Bush, Volodymyr Zelenskyy and former Vice President Mike Pence.
Powell later voiced support for other key American institutions, including universities, research organisations, Congress, the courts and the Constitution. “The United States has long been the leader of the world’s freedom-seeking people, the indispensable nation. Other countries know us as a nation built on integrity, and that integrity must be maintained,” he said.
Powell’s relationship with Trump and his decision to stay on the board
Powell, who often clashed with Donald Trump during his eight years as Fed chair, stepped down when his term ended in May. He was replaced by Kevin Warsh, Trump’s choice to lead the central bank.
Even after leaving the chairmanship, Powell took the unexpected step of remaining on the Federal Reserve’s governing board. His term as a board member runs until January 2028. By staying on the board, Powell prevented the Trump administration from filling another seat with a new appointee.
The administration has also tried to remove Fed Governor Lisa Cook, a move that would create another opening on the committee that sets interest rates. Cook challenged the effort in court, and so far, judges have allowed her to keep her position.