Federal Reserve Chair Jerome Powell said he doesn’t believe a high-profile Supreme Court case over former President Donald Trump’s dismissal of two Democrats from federal labor boards poses a threat to the Fed’s independence. Speaking at the Economic Club of Chicago, Powell acknowledged the case is being closely watched but said, “I don’t think that decision will apply to the Fed.”
Background to this is here:
Powell emphasized that the Fed operates independently of political pressure and reaffirmed its commitment to making policy decisions based solely on data and analysis to fulfil its dual mandate. “We’re never going to be influenced by any political pressure,” Powell said.
The case, involving Cathy Harris and Gwynne Wilcox, has raised concerns that a Supreme Court ruling in Trump’s favour could weaken safeguards protecting independent agencies like the Fed. Lawyers for Harris warned the decision could open the door to political interference at the central bank.
Powell said the Fed’s independence remains “widely understood and supported” across Washington, including in Congress.
Under current law, Fed governors—appointed by the president and confirmed by the Senate—can only be removed “for cause,” not over policy disagreements.
Jerome Powell at the Economic Club of Chicago
As for policy remarks, this from earlier:
