Powell Reaffirms Fed Independence at JFK Library Event

Federal Reserve Chair Jerome Powell addressed the John F. Kennedy Library Foundation, emphasizing that the central bank's statutory independence remains unchanged. He highlighted the Fed's long-standing role in providing economic and financial stability, deploying emergency liquidity tools during the Global Financial Crisis and the COVID-19 pandemic, and operating critical parts of the payments system.

Powell explained that governors and Reserve Bank presidents hold office with legal protection against removal and serve terms that are unrelated to the four-year presidential election cycle. When a new administration takes office, its responsibility is limited to filling vacancies on the Board of Governors and, as needed, the Chair and Vice Chair positions, all subject to Senate confirmation. Administrations have no role in selecting or overseeing the 12 Reserve Bank presidents.

He noted that, while monetary policy decisions are made under high uncertainty, the Fed acknowledges mistakes and adjusts course, basing decisions solely on economic analysis rather than the fortunes of any political party or politician. The speaker underscored the importance of preserving the credibility of the central bank as a priceless asset for American families and businesses.

Powell invoked the words of President Kennedy, John Adams and Edmund Burke to call for respect for the rule of law and unity in defending democratic institutions. He concluded that, despite political differences, all Americans share a common commitment to the nation's higher principles.

The remarks reflect Powell's personal views and are not necessarily those of his colleagues on the Federal Reserve Board or the Federal Open Market Committee.