Powell warns Trumps Fed interference threatens U.S. economic stability
Jerome Powell delivers stark warning as Trump’s attacks on Federal Reserve independence escalate
Former Federal Reserve Chair Jerome Powell has issued an unprecedented rebuke of political interference in the U.S. central bank, framing the Fed’s credibility as under direct threat from the Trump administration’s efforts to undermine its independence. In his first public remarks since stepping down as chair on May 15, Powell declared the Fed is undergoing a "stress test" comparable to other embattled U.S. institutions, explicitly linking the crisis to attempts to politicize monetary policy.
Powell’s comments, delivered Sunday at the John F. Kennedy Presidential Library in Boston, come as President Donald Trump faces accusations of weaponizing the Fed for political gain. While Powell avoided naming Trump directly, his prepared text left little doubt about the target: *"If any administration finds a way to remove Fed officials over policy differences, then future administrations will do so as well. The public would lose faith that the central bank will make decisions based only on what’s best for all Americans."* The Fed’s credibility, he warned, is "a priceless asset" built over decades and now at risk of erosion.
The backdrop to Powell’s intervention is a series of escalating clashes between Trump and the Fed. Officials confirmed last week that the president has threatened to fire Fed governors—including Powell, who remains on the board in a rare post-chair role—over policy disagreements, a move that would mark the first such purge in the Fed’s 112-year history. Trump has also launched a criminal investigation into the Fed’s $2.7 billion headquarters renovation, which critics allege is a pretext to pressure the central bank. Additionally, the administration has sought to replace Powell ally Lisa Cook, a Fed governor, with loyalists like Kevin Warsh, who was sworn in as chair on May 22 and has called for a "deep structural overhaul" of the institution.
Powell’s defense of the Fed’s independence was unequivocal. *"Congress wisely chose to insulate monetary policy decisions from political pressure,"* he said, noting that administrations from both parties have historically respected this firewall. *"These protections have served the public well."* His remarks follow a Financial Times report that Trump’s attempts to fire central bankers "undermine the rule of law," a charge Powell echoed by invoking the "higher principles that define our nation," including respect for institutional integrity.
The standoff has left the Fed in uncharted territory. Powell, who remains a governor pending resolution of Trump’s threats, has pledged to maintain a "low profile" in his new role—a situation not seen in 75 years. Meanwhile, the administration’s broader campaign to reshape the Fed has alarmed economists and former officials. *"This is not about policy differences; it’s about control,"* said one former Fed governor, speaking anonymously to Axios. *"If Trump succeeds, the Fed becomes just another arm of the White House."*
Trump’s health, Biden’s decline, and Pence’s rebuke add to political turbulence The Fed crisis unfolds against a volatile political landscape. Former Vice President Mike Pence has intensified his criticism of Trump, calling a proposed $1.776 billion federal fund to compensate January 6 defendants—including rioters who targeted Pence—"deeply offensive." Pence, who was evacuated from the Capitol during the 2021 attack, told the Independent the fund would reward those who "assaulted police officers and vandalized the building," framing it as a betrayal of law enforcement. His remarks signal a widening rift with Trump, who has championed the fund as a gesture of loyalty to his base.
Health concerns continue to dog both major-party figures. A three-page White House memo released Friday night declared Trump, 79, "in excellent health" and "fully fit" for office, but the report’s delayed release—at 10:44 p.m. on a Friday—and omissions fueled skepticism. While the memo attributed bruising on Trump’s hands to "frequent handshaking and aspirin therapy," medical experts questioned the need for repeated CT scans and the president’s use of two cholesterol medications despite "good" bloodwork results. Trump’s cognitive test performance, which he touted on social media, was not detailed in the report.
For President Joe Biden, health remains a lingering liability. In her new memoir, former First Lady Jill Biden admitted her husband was "slowing down" toward the end of his presidency, a rare acknowledgment that contradicts the White House’s past assurances. *"I felt like we were watching an AI hologram of the man we knew,"* she wrote of Biden’s June 2024 debate performance, though she later downplayed concerns in public appearances. The revelation has reignited Democratic frustration over the Bidens’ handling of the 2024 campaign, with former aides accusing the family of rewriting history and undermining the party’s credibility.
As the 2026 midterms approach, the convergence of institutional battles, personal health narratives, and intra-party divisions underscores a political climate defined by instability. Powell’s warning—*"The work to preserve our democracy can be noisy, frustrating, and embattled"*—captures the stakes, with the Fed’s independence emerging as a flashpoint in a broader struggle over the rule of law.
- aljazeera
- independent
- cphpost
- axios
- financial times





![Ex-Biden aides give Jills new book a frosty review Many former Biden aides think Jill Bidens new book is rewriting history, unhelpful to the Democratic Party and tone-deaf, they told Axios in interviews this week.The backlash comes as excerpts from the book — "View from the West Wing: A Memoir" — appeared online and the former first lady sat for her first interview since her husband left office in January 2025.Why it matters: Most Democratic Party leaders dont want to talk about Joe Bidens presidency, but the Bidens are making that difficult. Both are writing books and the former president plans to make campaign stops ahead of the November midterms.State of play: Jill Bidens book opens up a wound for many Democrats who believe the Bidens damaged their credibility with voters by insisting Joe Biden was fit enough to run for reelection in 2024 when he wasnt, and by pushing the party to publicly defend his fitness.Many Democrats feel the Bidens have yet to explain themselves, and that Jill Bidens new book is part of a larger pattern of looking for excuses and other people to blame.What theyre saying: Several Biden aides — including some of the most loyal ones — are fuming about the former first ladys reemergence.One former Biden official said: "I just wish they would give some more time and space and let people move on. It all feels so disingenuous."Another said: "The throughline between her book and [Kamala] Harris is that they blame everyone but themselves for the loss."A former senior Biden official added: "President Biden actually has a legacy that is impactful and should be celebrated at some point — getting us through the pandemic and passing life-changing bills. Why does he keep stepping on it himself?"A former Biden campaign aide said: "Its just so selfish. The Bidens preached selflessness and service above all — and every decision theyve made since he decided to run for reelection has been about themselves. Its also ironic — the only people undermining President Bidens legacy are the people closest to him."Even former spokesperson Andrew Bates — one of Bidens most aggressive defenders — told the New York Post he doesnt think the book will affect the upcoming midterms, but that hes still angry they lost the 2024 election and he doesnt see "why that painful conversation for the party needed to be publicly reopened right now."Driving the news: Former Biden aides are particularly incensed and dubious of the former first ladys version of events when it came to Joe Bidens aging and the debate that led him to exit the campaign.Jill Biden says now that she was "frightened" watching her husbands disastrous debate against Donald Trump, and writes in the book that she thought to herself: "Is this a stroke? I felt like we were watching an AI hologram of the man we knew, and the hologram was glitching. Has he been drugged?"After the debate, however, she didnt appear so worried and joined President Biden at a campaign rally, and a stop at a Waffle House, then introduced him at a rally the next day after an overnight flight.Her latest comments also are at odds with what Joe Bidens top aides said at the time and since: that the debate went badly, but the media and the Democratic Party overreacted.Other former Biden aides fumed that she was simultaneously insisting her husband had not declined, while also suggesting she may have missed it."Had he grown too old for the job and I hadnt noticed? I didnt think so, but could I be objective enough to be sure?" she writes in the new book.](https://images.axios.com/6mEceLWo08KqmgobzuiPA931J1I=/0x0:5487x3086/1366x768/2026/05/31/1780252567936.jpg)

