Powell Defends Fed Independence in Boston Speech

Jerome Powell warned that any administration removing Fed officials over policy differences would set a precedent for future administrations to do the same. He spoke while receiving a political courage award at an event in Boston. Powell stated that the credibility of the Fed, built over decades, is a priceless asset.

He said he and his colleagues have a duty to safeguard that credibility. Powell noted legal protections exist to prevent the removal of Fed officials. He added that the executive branch has no role in the selection or oversight of the 12 reserve bank presidents who vote on interest rates.

The Wall Street Journal reported on Powell's speech on Sunday. Powell did not single out any specific administration or air particular grievances during the event.