Powell Says He Doesn't Think Fed Will Lose It's Independence

• Powell asserts that the Fed's independence is an institutional arrangement that has 'served the people well' globally.
• He highlights that independence prevents direct elected official control over monetary policy, safeguarding against politically motivated economic manipulation.
• Maintaining this separation is crucial for the Fed's credibility and for making decisions based on what's best for the 'wide public', not specific groups.

Federal Reserve Chair Jerome Powell emphasized the critical importance of the central bank's independence from political influence. He stated that this institutional arrangement, common in advanced democracies, ensures monetary policy decisions are made for the broad public good, free from electoral cycle pressures, and is vital for maintaining the Fed's credibility.