Powell Cautions Against Politicizing Federal Reserve as Trump Keeps Up Attacks

Former Federal Reserve Chair Jerome Powell warned that the US central bank is facing a "stress test" similar to other institutions in the current political climate, amid unrelenting attacks from President Donald Trump. Speaking at a conference, Powell emphasized the importance of maintaining the Fed's independence and avoiding politicization, which he said could undermine its credibility and effectiveness. He noted that the central bank is under immense pressure to deviate from its apolitical mandate, but stressed that its decisions must remain based on economic data and long-term goals rather than short-term political considerations. Powell's remarks come as Trump has repeatedly criticized the Fed's interest rate policies and called for more accommodative monetary policy to boost the economy ahead of the election.