Jerome Powell warned that politicising the Federal Reserve would damage public trust in the US central bank in his first public remarks since stepping down as chair.
Powell made the comments on Sunday while accepting the John F. Kennedy Profile in Courage Award, according to prepared remarks.
The former Fed chair said democratic institutions take years to build but can be damaged quickly. He named the Fed, courts and universities among institutions tied to US strength.
Powell said the Fed was undergoing a “stress test” after political pressure on its structure and officials. He did not name President Donald Trump in the quoted remarks.
Powell’s term as Fed chair ended on May 15. Kevin Warsh took the oath as Fed chair on May 22, according to the Federal Reserve.
Powell has remained a Fed governor, partly because he sees continuing threats to the central bank’s independence.
Powell said the Fed’s structure was designed to protect monetary policy from political pressure. He warned that removing officials over policy differences would set a precedent for future administrations.
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The John F. Kennedy Library Foundation said Powell received the award for protecting an apolitical institution during sustained personal and professional pressure.
