DID Press: Jerome Powell has warned that increasing political pressure on central banking decisions could undermine institutional independence, weaken public confidence, and threaten long-term economic stability.
Speaking at the “John F. Kennedy Profile in Courage Award 2026” ceremony, Powell said the Federal Reserve has faced significant “stress tests” during the presidency of Donald Trump.
He cautioned that if governments are able to remove central bank officials due to policy disagreements, it could damage trust in monetary institutions and destabilize financial systems.
Although Powell did not directly name Trump in the key critical remarks, his comments come amid repeated public criticism of the Federal Reserve by Trump and reported tensions over its independence.
Reports also reference past threats and attempts linked to personnel changes within the Federal Reserve Board, including discussions around senior officials.
Powell used his remarks to defend democratic institutions and the rule of law, emphasizing that the independence of key economic bodies is essential for maintaining credibility and stability in the U.S. economy.