Jerome Powell will step down at the end of his term in May. But his legacy remains closely tied to defending the independence of the Federal Reserve during one of the most politically charged periods in modern American history.
By The New York Times
Jerome Powell, the current chairman of the United States Federal Reserve, is one of the figures most publicly attacked by Donald Trump, paradoxically, the man he himself appointed to head the US central bank in 2017. In recent years, Powell has become a symbol of the clash between institutional independence and political pressure from the White House. Trump has labeled Powell with a range of public insults, from “weak” and “retarded” to “enemy of America,” whenever the Federal Reserve has not lowered interest rates to his liking.
AN ATYPICAL PROFILE FOR THE WORLD OF CENTRAL BANKS
Jerome Powell does not come from the classic path of central bankers. A graduate of Laws from Princeton and Georgetown, he began his career as a lawyer, then moved to the private equity sector and became a partner at the powerful investment fund Carlyle Group. In the 1990s, he also worked at the US Treasury Department during the presidency of George HW Bush. In 2012, it was Barack Obama who appointed him to the Board of Governors of the Fed. Although a declared Republican, Powell was initially considered a compromise figure.
FROM “CONFIDENTIAL CHOICE” TO POLITICAL ENEMY
When Trump chose him to replace Janet Yellen, financial markets reacted with skepticism. Many analysts saw Powell as a figure without strong technical weight, whom the president could easily control. But the reality turned out to be different. Powell steadfastly defended the autonomy of the Federal Reserve, refusing to adapt monetary decisions to Trump’s electoral interests. This led the American president to a campaign of pressure and personal delegitimization, up to open threats of impeachment, which are legally impossible. “Our decisions are made in the public interest, not according to the preferences of the president,” Powell said, reaffirming the fundamental principle of the central bank’s independence.
ACCUSATIONS, INVESTIGATIONS AND PRESSURE BEFORE THE ELECTIONS
Another front of conflict has been the restructuring of the Federal Reserve headquarters, at a cost of over $2.5 billion. Although the project began before Powell took office, figures close to Trump have called for an investigation, using the issue as a tool for political pressure. According to an analysis by Corriere della Sera, Trump wants to quickly lower interest rates to stimulate the economy before the midterm elections, even if this would lead to an increase in inflation after the elections.
“I WOULD HAVE BEEN A LOVED ONE”
At the height of his anger at Powell, Trump has declared that he regrets not choosing a foreign banker to head the Fed. He even provocatively said, “Mario Draghi would have been better.” A statement that shows the level of Trump’s frustration with a figure who refused to be turned into a political tool.
A MANDATE UNDER FIRE
Jerome Powell will step down at the end of his term in May. But his legacy remains closely tied to defending the independence of the Federal Reserve during one of the most tense political periods in modern American history. In a presidency marked by ongoing conflict with the White House, Powell has chosen institutional resistance — a choice that has cost him politically but has strengthened the Fed’s role as a key pillar of global economic stability.