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Federal Reserve Governor Jerome Powell has delivered his most direct and robust defenses of the central bank independence after stepping down as chairman, warning that any single administration’s decision to remove Fed officials over policy differences would open the way for successors to follow suit, ultimately undermining the credibility that the Fed has spent decades building.

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00:01Like so many other institutions, the Fed has been undergoing a stress test.
00:06Congress wisely chose to insulate monetary policy decisions from political pressure.
00:12These protections have served the public well, and administrations from both political parties have respected them.
00:19If any administration finds a way to remove Fed officials over policy differences, then future administrations will do so as
00:28well.
00:28The public would lose faith that the central bank will make decisions based only on what's best for all Americans.
00:36The Fed's credibility would be lost.
00:39That credibility enables the Fed to support a strong and stable economy for the benefit of American families and businesses.
00:48Credibility has been built and sustained over many decades, and we have a duty to safeguard that priceless asset for
00:54our fellow citizens and for generations to come.
00:58As Americans, we are motivated by the belief that freedom and democracy greatly enhance human fulfillment.
01:07The work to preserve and strengthen our own democracy can be noisy, frustrating at times, and embattled.
01:15Partisan political differences are normal, indeed essential, in a thriving democracy.
01:22But we ought to be united in our commitment to the higher principles that define our nation.
01:29Chief among them is respect for the rule of law.
01:33As John Adams of Massachusetts wrote...
01:41As John Adams wrote...
01:43Ours is a government of laws, not of men.
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