Former Federal Reserve Chair Jerome Powell warned that politicizing the U.S.central bank could seriously undermine public trust in key democratic institutions.Speaking in prepared remarks while accepting the John F.Kennedy Profile in Courage Award from the John F.

Kennedy Library Foundation, Powell emphasized that institutions such as the Federal Reserve, courts, and universities require time and stability to build credibility, but can be damaged quickly if their independence is eroded.

Powell highlighted that the Federal Reserve has been under what he described as a “stress test,” referencing recent political pressure and controversies surrounding the institution.

These include reported efforts by President Donald Trump to remove Federal Reserve Governor Lisa Cook, calls for Powell’s resignation, and a criminal investigation involving Powell.

He warned that attempts by any administration to remove Fed officials based on policy disagreements could set a precedent that future governments might also follow, ultimately weakening the perception that the central bank makes decisions solely in the public interest.

He also stressed that the Federal Reserve’s structure is designed to protect monetary policy decisions from political influence, a safeguard he said has historically been respected by administrations from both major U.S.parties.Powell noted that maintaining this independence is essential for ensuring confidence in economic decision-making and stability in financial markets.Powell’s remarks came shortly after his term as Fed chair ended on May 15.His successor, Kevin Warsh, was sworn in on May 22.

Despite stepping down as chair, Powell has chosen to remain a Federal Reserve governor, citing ongoing concerns about threats to institutional independence.The award ceremony also honored the citizens of Minneapolis and St.Paul for their civic response to immigration enforcement actions in their region.