Powell warns Fed credibility is at risk amid political pressure

Jerome Powell warned that the Fed is undergoing a “stress test” and its independence from politics is essential to maintaining credibility. In remarks at the JFK Library after stepping down as Fed chair, he said any administration that tries to replace or remove Fed officials over policy would erode public trust, emphasizing decisions must be based on sound economic analysis rather than partisan aims. He also noted ongoing threats to Fed independence and commended the staff, while underscoring the broader duty to preserve democratic institutions.