Powell Warns Fed Is Under a Political 'Stress Test' on Independence

Fed governor Jerome Powell said the central bank is undergoing a “stress test” that could erode its credibility and independence if administrations can punish officials for policy disagreements. He stressed that policy decisions should be based on economic analysis rather than politics, a point he made while accepting the JFK Profile in Courage Award amid ongoing tensions with President Trump over monetary policy. The episode raises concerns about the Fed’s insulation and the rule of law in preserving a stable economy.