Ex-Federal Reserve chair Jerome Powell sounds alarm over political interference

Powell says central bank has been facing ‘stress test’ under Trump, as supreme court weighs decision on Fed governor that president tried to fire

Jerome Powell , the former chair of the Federal Reserve , has warned that a single act of political interference in monetary policy could permanently destroy public trust in the central bank.

As Donald Trump’s administration continues to test the Fed’s longstanding independence, Powell said in a speech on Sunday night that the institution was in the midst of a “stress test”.

Powell, who was accepting the 2026 John F Kennedy Profile in Courage award in Boston, stepped down as Fed chair last month, and was succeeded by Kevin Warsh , but remains on its board of governors.

Legal protections insulating monetary policy from politics “have served the public well” across administrations of both parties, Powell argued in his acceptance speech. “If any administration finds a way to remove Fed officials over policy differences,” he added, “then future administrations will do so as well”.

He spoke as the supreme court weighs a highly anticipated decision on the fate of the Fed governor Lisa Cook , whom Trump attempted to fire last August. Powell did not mention Trump, or Cook, by name.

“The public would lose faith that the central bank will make decisions based only on what’s best for all Americans,” Powell said. “The Fed’s credibility would be lost.”

The JFK Library Foundation’s award committee said it was honoring Powell for withstanding “years of personal attacks and threats from the highest levels of government”, noting that he “refused to let political forces dictate monetary policy”.