Powell warns against politicising Fed as Trump attacks
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- Jerome Powell delivered a speech at a Boston awards ceremony on Sunday, warning that politicising the Federal Reserve would undermine its credibility amid President Trump’s attacks on the bank.
- Jerome Powell said the Fed is undergoing a “stress test” comparable to other institutions in the Trump era, highlighting the pressure on the central bank.
- Jerome Powell praised Congress for “wisely” insulating the Fed from political pressure, noting that both parties have historically respected this norm.
- Jerome Powell warned that dismissing Fed officials over policy disagreements would erode public trust and the Fed’s ability to support a strong, stable economy.
- Jerome Powell accepted the 2026 John F Kennedy Profile in Courage Award and defended democratic institutions, emphasizing the rule of law and the need for unity beyond partisan differences.
Why it matters: Financial markets and American families benefit from a credible Fed; if Trump’s pressure leads to political meddling, the central bank’s independence could erode, raising borrowing costs and destabilising the economy.
