Former Fed Chair Jerome Powell states removing officials over policy disputes risks long-term trust in the central bank and USD stability.
Former Federal Reserve Chair Jerome Powell cautioned that allowing presidents to dismiss Fed officials over policy disagreements would undermine the central bank’s credibility. Such actions could erode public trust, which is critical for economic stability and the strength of the USD, he said.
The remarks come as the Supreme Court reviews a case involving Fed Governor Lisa Cook, whom President Donald Trump sought to remove over unproven mortgage fraud allegations. Cook has denied the charges. Powell emphasized that the Fed’s credibility has been built over decades and must be protected.
The US Dollar Index (DXY) rose 0.13% to 99.05 following the comments, reflecting market sensitivity to Fed independence and policy stability.