Federal Reserve Chair Jerome Powell said he will leave the U.S. central bank when "I think it’s appropriate to do so," and explained that his decision to remain for the time being reflects deep concern about recent legal actions targeting the institution.
Speaking at a news conference following his final policy meeting as chair, Powell said he was worried that the legal assaults are "battering the institution and putting at risk the thing that really matters to the public, which is the ability to conduct monetary policy without taking into consideration political factors."
Powell framed the independence of the central bank as a cornerstone of the nation’s economic system, saying it is important that Americans can count on a central bank free from political influence. "It’s part of the absolute foundation of this amazing economy that we have. It’s just one of the many reasons why the U.S. economy is the envy of the world," he said.
He also clarified that his decision to stay was not motivated by verbal criticism from elected officials, distinguishing between speech and the legal challenges he described as posing a more serious threat to the Fed's functioning.
The comments came at the end of a Fed policy session, where Powell held a news conference as chair. He did not set a specific timetable for his departure beyond the statement that he would leave when he personally judged it appropriate to do so.
Powell's remarks emphasized two themes: the vulnerability of the Fed to legal actions that could impede its policy-making autonomy, and the broader importance of institutional independence to public confidence in monetary policy. He underscored that protecting the Fed's ability to make decisions without taking into account political factors is what matters most to the public.
By characterizing the legal challenges as battering the institution, Powell highlighted a perceived escalation in threats that, in his view, extend beyond ordinary political criticism. He urged the public interest in maintaining a central bank whose decisions are not driven by political considerations.
Context and closing - Powell's statements at his final press conference as chair reiterated his commitment to safeguarding the central bank's independence and explained why he plans to remain until he considers it the right moment to step down.