Philenews

Powell Defends Fed Independence Amidst Political Pressure

Published January 12, 2026, 11:18
Powell Defends Fed Independence Amidst Political Pressure

Federal Reserve Chairman Jerome Powell responded to criticism and political pressure regarding monetary policy, emphasizing the independence of the central bank. In a statement, he confirmed that the Fed has received subpoenas from a federal grand jury regarding renovation work, but argued that this case is linked to broader efforts to influence its decisions. Powell stated that the Fed sets interest rates based on the public interest and not political preferences, and that its independence is essential for economic stability. He warned that attempting to set interest rates under political threat or intimidation would be harmful. Powell reminded that the Fed has already proceeded with interest rate cuts, but that future moves will be based solely on economic data, such as inflation and the labor market. He implicitly rejected criticism from Donald Trump, stating that he will not change course and will continue to operate with integrity. The statement by Powell is a clear response to attempts at political interference in monetary policy and a reaffirmation of the Fed's commitment to its independence.