In a speech on May 13, 2026, outgoing Federal Reserve Chair Jerome Powell delivered a robust defense of the central bank's independence, directly addressing criticisms from President Donald Trump. Powell stated that the Fed's credibility relies on its ability to make decisions free from political interference, particularly in setting monetary policy.
Powell's remarks come as Trump has repeatedly called for lower interest rates, breaking with a tradition of presidential restraint on Fed policy. The Fed chair noted that independent central banks have historically achieved lower inflation and more stable economic growth.
Powell, whose term as chair ends in May 2026, did not comment on his successor but emphasized that the Fed's institutional integrity must be preserved. The speech was delivered at a conference in Washington, D.C., and was widely covered by financial media.
