Former Federal Reserve Chair Jerome Powell has warned that increased political pressure on the US central bank could weaken public confidence in its independence, according to the report.
Speaking at the John F. Kennedy Library Foundation in Boston while accepting the Profile in Courage Award, Powell said the Federal Reserve, along with institutions such as courts and universities, is facing a political "stress test" under President Donald Trump's administration.
Jay Powell warns Federal Reserve is undergoing ‘stress test’ https://t.co/sLZGD4RJOv
— Financial Times (@FT) June 1, 2026
Powell pointed to efforts by the White House to push for his resignation, a Justice Department investigation into his tenure as Fed chair, and attempts to remove Fed Governor Lisa Cook. He argued that allowing administrations to remove Federal Reserve officials over policy disagreements would set a dangerous precedent.
"If any administration finds a way to remove Fed officials over policy differences, then future administrations will do so as well," Powell said, according to the report. He warned that Americans could lose faith in the central bank's ability to make decisions based solely on economic considerations.
The report noted that federal prosecutors had previously investigated the Fed's $2.5 billion headquarters renovation project, though the probe was dropped in April.
Powell's term as Fed chair ended on May 15, and he has since been succeeded by Kevin Warsh. However, Powell continues to serve as a member of the Federal Reserve Board of Governors.
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TIPP Staff
