Former Fed Chair Powell Says Political Pressure Tests Central Bank Independence

Jerome Powell, who stepped down as Federal Reserve chair on May 15, warned on Monday, June 1, 2026, that political interference could erode the central bank’s credibility and long-term institutional damage. Speaking in Boston, Powell said the Fed, like courts and universities, faces a “stress test” from the Trump administration. Powell cited the White House’s public call for his resignation, a Justice Department criminal probe into the Fed’s $2.5 billion headquarters renovation, and an attempt to remove Governor Lisa Cook. That investigation ended in April. He cautioned that if a government can oust officials over policy disagreements, the public will no longer believe monetary policy is free of political sway. Powell, who received the John F. Kennedy Profile in Courage Award, remains a Fed board member. Kevin Warsh succeeded him as chair on May 22. This was his first public address since leaving the top role.