Powell reaffirms Federal Reserve independence at JFK Library event

Federal Reserve Chair Jerome Powell used his remarks at the John F. Kennedy Library Foundation to restate the statutory independence of the central bank, a principle that binds all members of the Board of Governors and the presidents of the 12 Reserve Banks. The statement, delivered on the evening of the event, underscores that monetary-policy decisions must remain insulated from political pressure.

Powell recalled his personal experience of "November 1963" as a fifth-grader and highlighted President Kennedy's legacy of public service. He linked that memory to the "250 years" of American progress and framed the Fed's mission as part of the nation's broader democratic institutions.

Founded in "1913," the Federal Reserve's core responsibilities include promoting maximum employment, stable prices, supervising banks, and operating critical payment systems. Powell noted that over the "past 20 years" the Fed deployed emergency liquidity tools during two "world-historical crises" - the Global Financial Crisis and the COVID-19 pandemic - helping the U.S. economy outperform comparable nations. He also praised the career staff who have served alongside him for the "past 14 years."

The chair emphasized the legal protections that shield governors and Reserve Bank presidents from removal, noting that they serve terms unrelated to the "four-year presidential election cycle." Vacancies on the Board are filled by the President and confirmed by the Senate, while administrations have no role in selecting or overseeing the Reserve Bank presidents. These safeguards, he said, have been respected by administrations of both parties.

Concluding, Powell invoked the rule of law and the need to preserve democratic institutions, warning that any attempt to politicize the Fed would erode its credibility and undermine the stability that benefits American families and businesses.