Jerome Powell calls Fed's independence a 'priceless asset' in veiled Trump jab at JFK Awards

BOSTON, MASSACHUSETTS: Former Federal Reserve Chair Jerome Powell used his first major public appearance since stepping down as chair to deliver a forceful defense of independent institutions, warning that political interference could undermine public trust in the Federal Reserve and other pillars of American democracy.

Speaking on Sunday, May 31, while accepting the John F Kennedy Profile in Courage Award in Boston, Massachusetts, Powell described the Fed’s independence as a “priceless asset” and stressed that it must be preserved. He said maintaining public confidence in institutions such as the Federal Reserve, courts, Congress, and universities is crucial to safeguard “the foundation and the embodiment of our democracy.”

Jerome Powell warns against political interference in independent institutions

Powell argued that central bank independence is essential because monetary policy decisions must remain separate from political pressures.

“Like many other institutions, the Fed has been undergoing a stress test,” the 73-year-old said. “Congress wisely chose to insulate monetary policy decisions from political pressure. All other advanced economy nations have done the same.”

Powell warned that allowing one administration to remove Federal Reserve officials simply because it disagrees with policy decisions could create a precedent that future administrations would follow. Such a cycle, he suggested, could eventually damage the credibility and public trust that the central bank has built over decades.

The former Fed chair, who frequently clashed with President Donald Trump during his eight years leading the central bank, also broadened his defense beyond monetary policy. He described universities, research institutions, Congress, and the courts as critical components of democratic governance.

“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,” Powell said.

The Kennedy Foundation announced earlier this year that Powell would receive the award for protecting the Federal Reserve’s independence “despite years of personal attacks and threats from the highest levels of government.”

Jerome Powell remains on Fed Board as independence debate continues

Although Powell stepped down as chair when his term expired in May, he has remained a member of the Federal Reserve’s Board of Governors, where his term runs until January 2028. His decision to stay on the board means the Trump administration cannot immediately appoint a replacement to that seat.

The issue of Fed independence has remained in focus beyond Powell’s departure. The Trump administration has sought to remove Federal Reserve Governor Lisa Cook, a move that would create another vacancy on the Fed’s rate-setting body. Cook challenged the effort in court and has, for now, retained her position.

The award ceremony also honored residents of Minnesota’s Twin Cities for actions the foundation described as courageous during the ICE crackdown. Kennedy family members Caroline Kennedy and Jack Schlossberg said in a statement that people willing to defend democratic principles help ensure that “our democracy can’t survive” without public courage. 

Although Powell did not mention Trump by name, his remarks came amid ongoing debates over presidential influence on federal agencies and the central bank.