Jerome Powell warns that the Fed's credibility is at risk
Summary
Jerome Powell, the former Federal Reserve chair, warned that the Fed's independence and trust are being tested. He emphasized the importance of keeping the Fed free from political pressure to maintain a strong economy for all Americans.Key Facts
- Powell gave his first public speech since ending his term as Fed chair on May 15.
- He mentioned stress tests on the Fed's credibility without directly naming the Trump administration’s actions.
- The Trump administration investigated the Fed’s building renovation and tried to remove Fed governor Lisa Cook.
- Powell is still serving on the Fed board while a vacancy is being held open, preventing President Trump from filling it.
- He stressed that the Fed’s decisions should be based only on economic facts, not political interests.
- Powell praised Fed career staff for their dedication to serving the public.
- Incoming Fed chair Kevin Warsh criticized recent Fed policies and wants major changes.
- Powell called for respect of the rule of law and unity despite political differences to protect important institutions like the Fed.
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