According to an article by Nick Timiraos, known as the "Fed Whisperer," in a speech on Sunday evening, former Federal Reserve Chairman Jerome Powell stated that if any administration seeks a pretext to remove Fed officials simply due to policy disagreements, the central bank would not survive. Powell currently serves as a Federal Reserve Governor. Speaking broadly on topics such as institutions and the rule of law, he did not name any specific president or express any personal grievances. However, when it came to the institutional framework designed to keep monetary policy decisions out of presidential control, his wording was remarkably precise.
Powell emphasized the legal protections intended to prevent the arbitrary removal of Fed officials, specifically noting that the executive branch "plays no role in selecting or supervising the 12 regional Reserve Bank presidents," who, along with the Fed governors, jointly vote on interest rate decisions. "If any administration finds a pretext to remove a Fed official solely because of a policy disagreement, future administrations will inevitably follow suit," Powell said.
He pointed out that the credibility the Fed has built up over decades is an "invaluable asset," and that he and his colleagues have a "responsibility to defend it." (Jin Shi)