Fed Governor Powell Warns Politicizing Central Bank Would Destroy Public Trust

Federal Reserve Governor Jerome Powell warned on May 31, 2026, that any administration targeting Fed officials over policy differences would ultimately cost the central bank its public credibility. Delivering his first public remarks since his chairmanship ended on May 15, Powell said the Fed faces a “stress test” that includes President Donald Trump’s attempt to fire a governor and a criminal probe of Powell himself. He has remained on the board, preventing another Trump appointment, succession Kevin Warsh was sworn in as chair on May 22. Powell, accepting the Kennedy Profile in Courage Award, argued that if one administration finds a way to remove officials over policy disputes, future administrations will follow. “The public would lose faith that the central bank will make decisions based only on what’s best for all Americans,” he said. His decision to stay as a governor underscores ongoing concern among investors that political pressure could undermine the Fed’s independence and its ability to conduct apolitical monetary policy.