• Jerome Powell warns against politicizing the Federal Reserve during a speech after receiving the JFK Profile in Courage Award.
• He emphasizes the importance of the Fed's independence amid attacks from former President Trump.
• Powell highlights that undermining the Fed could lead to a loss of public trust and credibility.
• He intends to remain on the Fed board until 2028, citing threats to its independence.
• The award ceremony recognized both Powell and residents of Minneapolis for their courage in the face of federal immigration enforcement.

Former U.S. Federal Reserve Chair Jerome Powell delivered a strong defense of the importance of the Fed's independence in his first major public speech since stepping down, during the John F. Kennedy Profile in Courage Award ceremony. Powell warned that the Fed is undergoing a “stress test” akin to other institutions in the current political climate influenced by former President Donald Trump, highlighting that "democratic institutions take much time, effort, and patience to build but can be torn down all too quickly," according to Reuters.

In his remarks, Powell pointed out that separating policy decisions from political influences is crucial, stating, "If any administration finds a way to remove Fed officials over policy differences, then future administrations will do so as well," echoing concerns about Trump's attempts to dismiss officials who disagreed with him, as reported by Le Monde and Channel News Asia.

Powell stressed that the Fed's credibility, which has been built over decades, is a "priceless asset" that must be protected, as he accepted the award for safeguarding its independence amidst political pressure. He warned that losing this credibility could impair the Fed's ability to support a stable economy, a sentiment reiterated by Al Jazeera and South China Morning Post.

Powell’s remarks come in the wake of Trump's outspoken criticism of the Fed, alleging that it was too slow to respond to economic conditions with interest rate adjustments. It was noted that Trump's administration sought to instigate a criminal investigation into Powell himself and attempted to remove Fed Governor Lisa Cook, raising issues of political interference, as outlined in reports from Reuters and Le Monde.

Despite stepping down from his role as chair of the Fed earlier this month, Powell announced he would remain on the board until 2028 in order to safeguard the institution's independence amid ongoing challenges. He emphasized the significance of collective commitment to respect the rule of law and the foundational principles of democracy, aligning with the awards’ theme of recognizing public service courage against political pressures, as stated in South China Morning Post.