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  • 8 hours ago
Former Fed chair Jerome Powell warned that allowing presidents to remove central bank officials over policy disagreements would undermine the Federal Reserve's independence and damage public trust.
Transcript
00:00The U.S. Central Bank risks losing its credibility if presidents were able to dismiss officials over policy disagreements,
00:07according to former Federal Reserve Chair Jerome Powell.
00:11In his first remarks since leaving the role and being succeeded by Kevin Walsh,
00:15Powell says allowing such removals would set a dangerous president.
00:20He argued that public confidence in the Central Bank would weaken
00:24if its decisions were no longer seen as serving the interests of all Americans.
00:28Powell's comments came as the U.S. Supreme Court is deliberating the case of Federal Reserve Governor Lisa Cook,
00:34who President Donald Trump has sought to remove from office.
00:38Trump has accused Cook of mortgage fraud, an allegation she has denied.
00:42Powell also stressed that the Federal Reserve's legal protections are designed to shield monetary policy decisions from political influence.
00:50He also acknowledged the deep political divisions that exist across the U.S.,
00:54but called for continued support of the principles that underpin the country's institutions.
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