Jerome Powell says Fed independence isn't lost.. yet. 'I certainly hope we won't' lose it | Fortune

"In a press conference Wednesday following the Federal Reserve's interest rate decision to hold rates steady, Chair Jerome Powell made clear his stance on the Fed's independence. "We haven't lost it. I don't believe we will. I certainly hope we won't," Powell said. The comment comes several weeks after he made public the Justice Department served the Federal Reserve grand jury subpoenas targeting Powell about his June 2025 Congressional testimony regarding the $2.5 billion renovation of the Fed's headquarters."

"The subpoenas are only half of the story. For months, President Donald Trump has lobbed attacks at the Fed's construction project, frustrated by what he perceives as sluggishness to cut rates. To the administration, the Fed is holding back the engine to growth. Last August, Trump posted on Truth Social: "Jerome 'Too Late' Powell, a stubborn MORON, must substantially lower interest rates, NOW. IF HE CONTINUES TO REFUSE, THE BOARD SHOULD ASSUME CONTROL...""

"But Powell maintained the Fed has remained prudent on cuts, balancing the dual mandate of managing inflation and strengthening the job market. "We at the Fed will continue to do our jobs with objectivity, integrity, and a deeper commitment to serve the American people," Powell said at Wednesday's press conference. The Fed has implemented 175 basis point cuts since September 2024."

Jerome Powell affirmed Federal Reserve independence and expressed confidence it will be preserved. He responded to Justice Department grand jury subpoenas targeting his June 2025 Congressional testimony about the $2.5 billion renovation of the Fed headquarters. President Donald Trump has criticized the construction project and pressed for faster rate cuts, urging the Fed board to assume control if Powell refuses. Powell said the Fed has been prudent, balancing inflation control and job market strength, and noted 175 basis points of cuts since September 2024. The Fed held its policy rate at 3.50%–3.75% in a 10–2 vote, with two governors dissenting for a quarter-point cut. Powell declined further comment on the subpoena and the dollar's slump.

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