Former Federal Reserve Chairman Jerome Powell issued a stern warning against the growing politicization of the central bank, stating that attempts to pressure the institution undermine public trust in government. This statement marked his first public commentary following the conclusion of his eight-year term at the Fed.

During a ceremony where he received the John F. Kennedy Profile in Courage Award, Powell highlighted the importance of central bank independence. He noted that building sustainable democratic institutions takes decades, but they can be dismantled almost instantaneously due to fleeting political ambitions.

The former head of the US regulator acknowledged that the agency has recently undergone an unprecedented political “stress test.” Powell specifically referenced President Donald Trump’s open attempts to dismiss Fed Board Governor Lisa Cook, the regular calls for his own resignation, and a criminal investigation against him that the Department of Justice officially closed only in May.

Powell emphasized that the Fed’s independent status, alongside impartial courts, is the cornerstone of the US’s international authority and economic stability. Any attempts by the White House to manipulate monetary policy for electoral gains pose a direct threat to national security.