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Fed Chair Powell Slams 'Unprecedented' Attacks on Central Bank
🇩🇪 Germany /Economy & Trade

Fed Chair Powell Slams 'Unprecedented' Attacks on Central Bank

From Die Zeit · (7m ago) German Critical tone

Translated from German, summarized and contextualized by DistantNews.

TLDR

  • Federal Reserve Chair Jerome Powell criticized the Trump administration's legal actions against the central bank as "unprecedented" in its 113-year history.
  • Powell stated these actions endanger the Fed's ability to conduct monetary policy free from political influence, emphasizing the importance of an independent central bank for the U.S. economy.
  • He also announced he would remain on the Fed's board after his term ends, citing the need for transparency in investigations against him.

In what may be his final press conference as head of the U.S. central bank, Federal Reserve Chair Jerome Powell did not mince words when addressing the Trump administration's unprecedented legal challenges to the institution. Powell unequivocally labeled these government actions as "unprecedented" in the Fed's 113-year history, a strong rebuke that underscores the gravity of the situation. He articulated a clear concern that such interference jeopardizes the Fed's core mandate: conducting monetary policy without the corrosive influence of political considerations.

Diese rechtlichen Schritte der Regierung sind in unserer 113-jährigen Geschichte beispiellos

— Jerome PowellJerome Powell described the government's legal actions against the Fed as 'unprecedented in our 113-year history.'

Powell stressed that the independence of the Federal Reserve is not merely an abstract principle but a cornerstone of the U.S. economic system. He emphasized that American citizens must be able to rely on a central bank that operates free from political pressure, highlighting its role as an "absolute foundation" of economic stability. This defense of institutional integrity comes at a critical juncture, as the administration's actions appear to be an attempt to undermine the Fed's autonomy.

Fähigkeit, Geldpolitik ohne Berücksichtigung politischer Faktoren zu betreiben

— Jerome PowellPowell stated that the administration's actions endanger the Fed's 'ability to conduct monetary policy without regard to political factors.'

Adding a personal dimension to the ongoing controversy, Powell announced his intention to remain on the Fed's board of governors after his term as chair concludes. He framed this decision as a necessity, stating that recent events left him "no choice" but to stay. This move appears driven by a desire for transparency and a definitive resolution to the investigations concerning renovation costs at the Fed's headquarters, which he has previously characterized as a pretext for political pressure. His commitment to remaining on the board until these investigations are "truly and definitively concluded under transparent conditions" signals a determination to clear his name and protect the institution's reputation.

ein absolutes Fundament

— Jerome PowellPowell called the Fed's independence 'an absolute foundation' of the U.S. economy.
DistantNews Editorial

Originally published by Die Zeit in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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