Jerome Powell says Fed independence isn’t lost … yet. ‘I certainly hope we won’t’ lose it

In a press conference Wednesday following the Federal Reserve’s decision to hold interest 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’s serving the Federal Reserve grand jury subpoenas targeting Powell over 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 a sluggishness in cutting rates. In the administration’s view, the Fed is holding back the engine for 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, integrit...