Jerome Powell Uses Speech to Send a Message

Jerome Powell didn't name names Sunday night, but his message in Boston was clear. Accepting a "Profile in Courage" award from the family of John F. Kennedy, the former Federal Reserve chair warned that presidents should butt out of the central bank's business, reports the Wall Street Journal. "If any administration finds a way to remove Fed officials over policy differences, then future administrations will do so as well," said Powell, who took heavy criticism from President Trump over the last year over interest rates.

"Like many other institutions, the Fed has been undergoing a stress test," said Powell, per the AP. "Congress wisely chose to insulate monetary policy decisions from political pressure. All other advanced economy nations have done the same." While the president appoints the Fed chair and its governors, Powell stressed that the White House has no role in choosing or overseeing the 12 regional Fed presidents who help set interest rates.

His comments land as the Supreme Court prepares to rule on Trump's attempt to fire Fed governor Lisa Cook—the first such effort in the Fed's 113-year history. After his term as chair ended, Powell made the rare move of staying on as a governor, perhaps, the Journal notes, to help make sure that Fed presidents remain independent. The governors approve those appointments and reappointments.