Powell Says Fed Independence Remains Vital as His Board Term Runs to 2028

Former Federal Reserve Chair Jerome Powell accepted the John F. Kennedy Profile in Courage Award on Sunday at the Kennedy Presidential Library in Boston. In the speech, Powell said the Federal Reserve’s independence is a “priceless asset” that Congress had wisely insulated from short-term political influence.

According to the speech, all other advanced economies follow the same approach of shielding monetary policy from elected officials. Powell warned that removing officials over policy disagreements would erode the credibility built over decades and open the door for future administrations to do the same.

He also defended universities, courts, Congress and the Constitution, stating that the United States must maintain its integrity as the leader of freedom-seeking nations.

Powell stepped down as chair when his term expired in May and was succeeded by Kevin Warsh. He retained his seat on the Fed’s governing board through January 2028. The current administration has sought to remove Fed governor Lisa Cook; Cook filed suit and courts have allowed her to remain in the seat.

Powell did not name any president during the speech. He acknowledged that the Fed is “human and thus imperfect,” noting that officials must admit mistakes and adjust course when they occur. Inflation rose sharply during the pandemic supply disruptions. Powell did not address specific timing of rate decisions in the provided excerpts.

The award also recognized residents of Minnesota’s Twin Cities for actions during a federal immigration enforcement operation that resulted in thousands of arrests.