Powell says Fed’s credibility lost if president can fire officials
Former Federal Reserve chair Jerome Powell warned that allowing a president to fire central bank officials over policy disagreements would destroy the institution's credibility. The comments come as the Supreme Court reviews the status of Fed governor Lisa Cook, who faces contested mortgage fraud allegations from the Trump administration.
Why it matters
The independence of the Federal Reserve is a cornerstone of US economic stability; political interference could lead to market volatility and loss of public trust in monetary policy.
Share Jerome Powell’s remarks come as the Supreme Court weighs Federal Reserve governor Lisa Cook’s fate amid Donald Trump’s bid to fire her over mortgage fraud allegations. Jerome Powell is expected to remain on the Federal Reserve board of governors until January 2028. (EPA Images pic) WASHINGTON : Former Federal Reserve (Fed) chair Jerome Powell said the US central bank would lose the credibility that’s required to support a strong and stable economy if any president were free to dismiss Fed officials over policy disagreements. “If any administration finds a way to remove Fed officials over policy differences, then future administrations will do so as well,” Powell said in the text of remarks prepared for delivery Sunday in accepting the John F Kennedy Profile in Courage Award at the JFK Presidential Library in Boston.
The article reports on Powell's public statements and the ongoing legal context without taking a partisan stance on the validity of the allegations.
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