Jerome Powell, the former Federal Reserve Chair, used a major public appearance to champion the independence of vital institutions, accepting an award recognizing his efforts to safeguard the central bank’s autonomy.
Speaking at the John F. Kennedy Presidential Library in Boston, Powell underscored the critical role of universities, courts, Congress, and the Federal Reserve, describing them as “the foundation and the embodiment of our democracy.” He asserted that the Fed’s independence was a “priceless asset” demanding protection.
This address marked one of Powell’s most direct defenses of the Fed’s autonomy, in which he cautioned that any administration’s decision to remove bank officials over policy disagreements would set a dangerous precedent, inviting future elected officials to follow suit.
Such actions, he warned, would ultimately erode the credibility the Federal Reserve has meticulously built over decades.
Powell, who frequently encountered opposition from the Trump administration during his time as chair, concluded his term in May. He was succeeded by Kevin Warsh, whom the administration selected to lead the central bank.
Following his departure as chair, Powell took the unusual step of retaining his seat on the Fed’s governing board, a position he holds until January 2028. This decision effectively prevented the administration from appointing another member to the board.
The administration also sought to dismiss Fed governor Lisa Cook, which would have created an additional vacancy on the rate-setting committee for the president to fill. However, Cook initiated legal action, and courts have so far allowed her to retain her seat.
While Powell refrained from directly naming the president, his remarks consistently emphasized the imperative to shield institutions from political pressure and preserve public trust in their independence.
“Like many other institutions, the Fed has been undergoing a stress test,” he stated. “Congress wisely chose to insulate monetary policy decisions from political pressure. All other advanced economy nations have done the same.”
Since 1989, the John F. Kennedy Profile in Courage Award has honored public servants who demonstrate courageous decisions of conscience, often in the face of personal or professional repercussions.
Previous recipients include Presidents Barack Obama and George H. W. Bush, Ukrainian President Volodymyr Zelenskyy, and Vice President Mike Pence.
In March, the foundation announced Powell as an honoree for his steadfast protection of the Federal Reserve’s independence “despite years of personal attacks and threats from the highest levels of government.”
The administration had been a vocal critic of Powell throughout his tenure, frequently assailing the Fed’s interest-rate decisions and advocating for more aggressive cuts to borrowing costs.
Beyond the Federal Reserve, Powell extended his defense to include U.S. universities and research institutions, the Constitution, Congress, and the court system. “The United States has long been the leader of the world’s freedom-seeking people — the indispensable nation.
Other countries know us as a nation built on integrity, and that integrity must be maintained,” he affirmed. In his speech, Powell also indirectly acknowledged past missteps during his leadership.
The Fed is legally mandated to pursue price stability, yet inflation surged amid the pandemic’s supply chain disruptions. Many economists believe the central bank should have raised interest rates more swiftly in response.
“At the Fed, we are, of course, human and thus imperfect,” Powell conceded. “When we make mistakes, we acknowledge them and change course.”
Powell shared the honor with residents of Minnesota’s Twin Cities, who received the award for their acts of courage during a federal immigration crackdown.
This enforcement activity led to thousands of arrests and the tragic deaths of Minneapolis mother Renée Good and nurse Alex Pretti, both of whom were killed while observing or documenting the operations.
“It’s wonderful just to be invited, honoring Renée,” said Tim Granger, Renée Good’s father, as he entered the library with family members.
Caroline Kennedy, the sole surviving child of John F. Kennedy, and her son, Jack Schlossberg, issued a statement asserting that without individuals like Powell and the Minnesota residents “willing to put their lives on the line to hold America to its promises, our democracy can’t survive.”
Senator Amy Klobuchar, an attendee who is campaigning for governor of Minnesota next year, remarked on the unusual nature of the award, which recognizes ordinary citizens rather than elected officials. “This didn’t go to an elected leader for a reason,”
Klobuchar observed. “It’s because the people stood up. They stood up by marching 50,000 strong. They stood by bringing kids they didn’t even know — strangers’ kids — to school, by bringing them groceries and they didn’t blink. And that’s what this award is about. It’s about courage.”
