Jerome Powell warns against meddling at Fed, says democratic institutions can be 'torn down quickly'

Former Federal Reserve Chairman Jerome Powell took a parting shot at President Trump, warning that the central bank’s independence was a “priceless asset” that must be defended.

In one of his first major appearances since ending his stint as chairman of the Federal Reserve, Mr. Powell accepted the John F. Kennedy Profile in Courage Award on Sunday night.

He dedicated most of his acceptance speech to railing against political interference in democratic institutions. Although he never mentioned Mr. Trump by name, it was clear that he was referencing the president’s efforts to fire Governor Lisa Cook and pressure the Fed to slash interest rates.

“Like many other institutions, the Fed has been undergoing a stress test,” Mr. Powell said. “Congress wisely chose to insulate monetary policy decisions from political pressure. All other advanced economy nations have done the same.”

“Democratic institutions take much time, effort, and patience to build but can be torn down all too quickly,” he added. “It is essential that we preserve what is good about these institutions, even as we strive to improve them.”

Mr. Powell’s term as chairman ended last week, but he is staying at the bank as a member of its board of governors until an internal investigation into the renovations of the Fed’s headquarters is complete.

Kevin Warsh, who was selected by Mr. Trump, replaced Mr. Powell as Fed chairman.

Mr. Trump, during his first term as president, appointed Mr. Powell to the chairman post. However, since Mr. Trump returned to the White House last year, he has repeatedly criticized and even mocked Mr. Powell, insulting him with the nickname “too late” for his unwillingness to make deep rate cuts.

The former Fed chair’s remarks went beyond the central bank. He also warned that U.S. universities, research and other institutions must remain free from political interference.

“The United States has long been the leader of the world’s freedom-seeking people — the indispensable nation. Other countries know us as a nation built on integrity, and that integrity must be maintained,” he said.

Mr. Powell acknowledged that he made some mistakes during his tenure. He did not name a specific mistake, but many economists believed he should have raised interest rates faster to combat surging inflation during the COVID-19 pandemic.

“At the Fed, we are, of course, human and thus imperfect,” Mr.  Powell said. “When we make mistakes, we acknowledge them and change course.”

The John F. Kennedy Profile in Courage Award recognizes public servants who make what the foundation views as courageous decisions of conscience in the face of personal or professional consequences.

Also honored on Sunday were the residents of Minnesota’s Twin Cities for their protests against the Trump administration’s immigration crackdown in that state. Two U.S. citizens died during the protest, Renee Good and Alex Pretti. Ms. Good’s father attended the ceremony.