Ex-Federal Reserve chair Jerome Powell sounds alarm over political interference
Summary
Jerome Powell, the former chair of the Federal Reserve, warned that political interference in the Fed’s decisions could destroy public trust in the institution. He spoke amid a legal battle over President Donald Trump’s attempt to remove Fed governor Lisa Cook, emphasizing the importance of the Fed’s independence from politics.Key Facts
- Jerome Powell stepped down as Fed chair last month and was replaced by Kevin Warsh but remains on the board.
- Powell received the John F. Kennedy Profile in Courage award for resisting political pressure.
- He said political interference in monetary policy could cause the public to lose faith in the Fed.
- President Trump tried to fire Fed governor Lisa Cook in August 2025, the first such attempt in Fed history.
- A judge blocked Trump’s firing of Cook, ruling the reasons were not a lawful cause for removal.
- The U.S. Supreme Court is reviewing the case and has shown skepticism about Trump’s effort.
- Powell said Fed officials have legal protections and serve terms independent of presidential control.
- Powell called the legal case about Cook’s firing possibly the most important in the Fed’s history.
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