at a press conference on wednesday Fed’s decision In an effort to keep interest rates steady, Chairman Jerome Powell made clear his stance on the Fed’s independence.
“We’re not losing it. I don’t believe we’re going to lose it. I certainly hope we’re not,” Powell said.
The comments came weeks after he made his Justice Department service public. Federal Reserve Grand Jury Subpoena An attack on Powell’s testimony before Congress in June 2025 on the $2.5 billion renovation of the Federal Reserve headquarters.
Subpoenas are only half the story. President Donald Trump has been attacking the Fed’s construction program for months, frustrated by its slow move to cut interest rates. The government believes the Fed is squelching the growth engine. Last August, Trump posted on Truth Social: “It’s ‘too late’ for Jerome Powell, a stubborn idiot, to drastically lower interest rates now. If he continues to refuse, the board should assume control.”
But Powell insisted that the Fed remains cautious in cutting interest rates and balancing its dual mission of managing inflation and strengthening the job market.
Powell said at a press conference on Wednesday: “We at the Federal Reserve will continue to work objectively and with integrity and are even more committed to serving the American people.” Since September 2024, the Federal Reserve has implemented 175 basis points of interest rate cuts.
Beyond those comments, the Fed chair remained tight-lipped on other political matters, responding tepidly to other questions about the Fed subpoena and the dollar’s plunge, saying, “I have nothing to tell you about that.”
On Wednesday, the Federal Reserve kept interest rates between 3.50% and 3.75%, trying to balance the conflicting realities of a plummeting dollar and rising stocks. Gov. Stephen Milland and recent Trump appointee Christopher Waller voted 10-2 to keep rates steady. Both pushed for a quarter-point rate cut to comply with White House demands.
Political arguments aside, Powell also stressed the Fed’s caution about further rate cuts, ensuring any future decisions would be based on a precise analysis of inflation data, much of which is currently influenced by trade policy, as Powell cited “one-time price increases” in consumer goods due to tariffs.
Powell’s term as chairman ends in May. Although he has not yet determined who will succeed him, Trump has narrowed the search to four contenders: Federal Reserve Governor Christopher Waller, National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh and BlackRock chief investment officer Rick Reedwho has soar Markets have predicted in recent weeks that he would be the frontrunner to succeed Powell.
The Fed chair offered advice he would share with his successor: “Don’t get involved in elected politics.”