Powell Defends Fed Independence Against Trump Before Stepping Down

As he prepares to step down, Federal Reserve Chair Jerome Powell strongly defended the necessity of the Fed's independence and credibility on Friday, even as the central bank faces criticism from President Trump. According to AFP, Powell stated at a Kennedy Library Foundation awards ceremony, 'Like many other institutions, the Fed is undergoing a stress test.' Powell remarked, 'If any administration could remove Fed officials due to policy disagreements, future administrations would do the same.' This was a clear allusion to the Trump administration's previous attempts to remove Fed Governor Lisa Cook. 'The public would no longer believe that the Fed is making decisions in the best interest of all Americans,' he added. During his second term, Trump has repeatedly criticized and humiliated Powell, blaming him for failing to cut interest rates in time. Under Trump, the Justice Department even sought criminal charges against the Fed chair over a building renovation project. However, the investigation was eventually dropped to ensure the smooth confirmation of Powell's successor. Additionally, Trump attempted to remove Cook on allegations of mortgage fraud. The U.S. Supreme Court is set to rule on the legality of this move.