Outgoing U.S. Federal Reserve Chair Jerome Powell used a high-profile award acceptance speech Sunday to deliver a firm, public defense of the U.S. central bank’s long-standing political independence, pushing back against repeated assaults on the institution’s autonomy from the Donald Trump administration.
Speaking at the John F. Kennedy Library Foundation, where he received the 2025 Profile in Courage Award for his efforts to protect the Fed’s independence, Powell framed the recent challenges to the central bank as an unprecedented stress test for its institutional credibility. “Like many other institutions, the Fed has been undergoing a stress test,” Powell told the audience. “If any administration finds a way to remove Fed officials over policy differences, then future administrations will do so as well.”
Powell’s warning came as a thinly veiled rebuke of the Trump administration’s efforts to oust Federal Reserve Governor Lisa Cook over unsubstantiated mortgage fraud allegations. The legality of the administration’s attempt to remove Cook is currently pending before the U.S. Supreme Court, with a ruling expected in the coming months.
If successful, Powell argued, such a move would irreparably damage public trust in the central bank’s ability to set monetary policy in the best interest of all Americans, rather than for short-term political gain. “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,” he added.
This is not the first time the Trump administration has targeted Powell himself. During his second term in office, Trump repeatedly launched public attacks on Powell, criticizing him for moving too slowly to cut interest rates to stimulate economic growth. The administration’s Department of Justice even opened a criminal investigation into Powell over a routine building renovation project at the Fed, a probe that was only dropped to clear legislative path for the confirmation of Powell’s successor, Trump’s nominee Kevin Warsh, by the U.S. Senate.
Powell officially stepped down from his role as Fed chair earlier this month at the end of his four-year term. In an unusual break from precedent for outgoing chairs, he has chosen to remain on the Fed’s Board of Governors through the end of his governor term, which expires in 2028. Powell has cited ongoing threats to the central bank’s independence as his reason for staying, while committing to maintain a low public profile in the role.
Trump has openly celebrated Warsh’s ascension to the top Fed role, following a lengthy, partisan confirmation battle in the Senate. The president hosted a lavish swearing-in ceremony for Warsh at the White House last week, and Treasury Secretary Scott Bessent echoed Trump’s positive tone Friday, telling reporters “The renewal and change is good, and I think we are going to see a new sheriff in town.”
Sunday’s award ceremony also honored the people of Minnesota’s Twin Cities — Minneapolis and St. Paul — with the Profile in Courage Award. The foundation recognized local residents for risking their safety to protect neighbors and immigrant community members during a massive, Trump-ordered surge in federal immigration enforcement operations earlier this year. The crackdown sparked widespread mass protests across the region, and left at least two U.S. citizen protesters and one migrant dead in confrontations with law enforcement.