Ex-US Fed Chair Powell warns against politicisation amid Trumpโs attacks
Former US Federal Reserve Chair Jerome Powell has warned against the politicisation of monetary policy amid President Donald Trumpโs repeated attacks on the independence of the central bank. In a speech at an awards ceremonyย in Bostonย on Sunday,ย Powellย said that the Fed hadย been
Former US Federal Reserve Chair Jerome Powell has warned against the politicisation of monetary policy amid President Donald Trumpโs repeated attacks on the independence of the central bank.
In a speech at an awards ceremonyย in Bostonย on Sunday,ย Powellย said that the Fed hadย been undergoing a โstress testโ like many other institutions in the Trump era.
Powell said the US Congress had โwiselyโ chosen to insulate the central bank from political pressure and that all other advanced economies had similar norms upholding the independence of monetary policy.
โThese protections have served the public well, and administrations from both parties have respected them,โ Powell said after accepting the 2026 John F Kennedy Profile in Courage Award.
โIf any administration finds a way to remove Fed officialsย overย policyย differences, then future administrations will do so as well,โ Powell said.
โThe public would lose faith that the central bank will make decisions based only on whatโs best for all Americans.โ
Powell, who stepped down as the head of the central bank last month, said that the Fedโs credibility would be โlostโ in such a scenario.
โThat credibility enables the Fed to support a strong and stable economy for the benefit of American families and businesses,โ he said.

