Jerome Powell warns politics could damage Federal Reserve public trust
Jerome Powell, chair of the Federal Reserve, is sounding the alarm about politics messing with central banking.
At an award ceremony on May 31, he said that firing officials just because you disagree with them could seriously harm public trust in the Federal Reserve.
He emphasized how crucial it is for the Fed to stay independent and make decisions based on real economic analysis, not political pressure.
Supreme Court hears Trump v Cook
Powell's warning comes as the Supreme Court gets ready to decide on Donald Trump's 2025 attempt to remove Fed governor Lisa Cook over alleged misconduct, a move blocked by a federal judge for lacking legal grounds.
Powell called this "perhaps the most important legal case in the Fed's 113-year history," noting that weakening protections for Fed officials could shake confidence and even threaten democracy.
The final ruling is expected later this June and could shape how much politics can influence America's central bank going forward.