Powell Warns Political Pressure Could Undermine Fed as He Keeps Board Seat Until 2028
Updated
Updated · KCCI Des Moines · Jun 1
Powell Warns Political Pressure Could Undermine Fed as He Keeps Board Seat Until 2028
5 articles · Updated · KCCI Des Moines · Jun 1
Boston — In one of his first major appearances since leaving the Fed chair in May, Jerome Powell used a JFK award speech to call the Fed’s independence a “priceless asset” and warn against pressure on the central bank, courts, Congress and universities.
Powell said firing bank officials over policy differences would invite future presidents to do the same, eroding credibility the Fed has built over decades and weakening trust in monetary policy.
His remarks came after years of clashes with Donald Trump, who repeatedly attacked Fed rate decisions, chose Kevin Warsh to succeed Powell as chair and has also sought to remove Governor Lisa Cook; Cook has so far kept her seat through court action.
Powell remains on the Fed board until January 2028 — an unusual move after stepping down as chair — limiting the administration’s ability to open another vacancy as the fight over institutional independence broadens beyond the central bank.
How will the new Fed Chair's policies reshape America's fight against inflation?
Could a Supreme Court ruling soon let presidents fire Fed officials at will?
The 2026 Fed Crisis: Trump’s Criminal Probe, Powell’s Defense, and the Future of Central Bank Independence
Overview
In early 2026, political pressure on the Federal Reserve intensified when the Trump administration launched a criminal investigation into Chair Jerome Powell. This move was widely seen as an attempt to increase presidential control over monetary policy, especially interest rates. The investigation sparked immediate and bipartisan condemnation, uniting former Fed leaders and key Republicans in defense of the central bank’s independence. Powell publicly denounced the probe as a pretext to influence rate decisions, which further galvanized support for Fed autonomy. This confrontation highlighted the ongoing struggle to protect the Federal Reserve from political interference and maintain its crucial independence.