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Jerome Powell warned Sunday that any administration that removes Federal Reserve officials over policy differences would cause the public to lose faith in the central bank, delivering his first public remarks since stepping down as Fed chair.
"If any administration finds a way to remove Fed officials over policy differences, then future administrations will do so as well," Jerome Powell said while accepting the John F. Kennedy Profile in Courage Award at the John F. Kennedy Library Foundation in Boston. "The public would lose faith that the central bank will make decisions based only on what's best for all Americans."
Jerome Powell, whose eight-year tenure as Fed chair ended on May 15, said the Fed and other institutions including universities, courts, and Congress are "the foundation and the embodiment of our democracy." He described the Fed's credibility as a "priceless asset" built over many decades that officials have a duty to safeguard.
"Like many other institutions, the Fed has been undergoing a stress test," he said. "Congress wisely chose to insulate monetary policy decisions from political pressure. All other advanced economy nations have done the same."
