Jerome Powell Defends US Fed Independence Amidst Trump Pressure & Tariff Talk

At the Economic Club of Chicago, Federal Reserve Chairman Jerome Powell offered a strong defence of the Fed’s independence, at a time when questions around central bank autonomy are being raised both legally and politically. Powell emphasized that the Federal Reserve’s structure is protected by law — its governors serve long terms and cannot be removed by the President except “for cause.” He noted that while Congress has the power to change this framework, bipartisan support for Fed independence remains strong across Capitol Hill. Referencing a developing Supreme Court case that could impact the broader question of independent agency governance, Powell clarified that he doesn’t believe the ruling will affect the Fed—but admitted the situation is being closely monitored. More importantly, Powell reassured the public that the Fed’s policy decisions will always be rooted in data, analysis, and its dual mandate—maximum employment and price stability—not politics.