Jerome Powell says the US central bank is undergoing a ‘stress test’ like other institutions in the current era. Published On 1 Jun 20261 Jun 2026Former US Federal Reserve Chair Jerome Powell has warned against the politicisation of monetary policy amid President Donald Trump’s repeated attacks on the independence of the central bank.In a speech at an awards ceremony in Boston on Sunday, Powell said that the Fed had been undergoing a “stress test” like many other institutions in the Trump era.Recommended Stories list of 4 itemsend of listPowell said the US Congress had “wisely” chosen to insulate the central bank from political pressure and that all other advanced economies had similar norms upholding the independence of monetary policy.“These protections have served the public well, and administrations from both parties have respected them,” Powell said after accepting the 2026 John F Kennedy Profile in Courage Award.“If any administration finds a way to remove Fed officials over policy differences, then future administrations will do so as well,” Powell said.“The public would lose faith that the central bank will make decisions based only on what’s best for all Americans.”Powell, who stepped down as the head of the central bank last month, said that the Fed’s credibility would be “lost” in such a scenario.“That credibility enables the Fed to support a strong and stable economy for the benefit of American families and businesses,” he said.“Our credibility has been built and sustained over many decades, and we have a duty to safeguard that priceless asset for our fellow citizens and for generations to come.”Powell, who made the usual decision to stay on as one of the seven members of the Fed’s Board of Governors after stepping down as chair, also offered a broader defence of democratic institutions generally. Advertisement “Partisan politi …
