Jerome Powell stepped down as Federal Reserve chair on May 15, 2026, and was succeeded by Kevin Warsh, who was sworn in a week later on May 22 [1, 2, 3]. Powell remains on the Federal Reserve Board of Governors until 2028, an unusual continuation after stepping down as chair [1, 4, 5].
On May 31 in Boston, Powell accepted the 2026 John F. Kennedy Profile in Courage Award, recognizing his defense of the Fed’s independence amid mounting political pressures [1, 6]. He warned that efforts by the Trump administration to politicize the central bank threaten its credibility and the public’s trust. “If any administration finds a way to remove Fed officials over policy differences, then future administrations will do so as well,” Powell said [1].
Powell highlighted attempted efforts by the Trump administration to remove Fed Governor Lisa Cook over allegations of mortgage fraud. The legality of Cook’s removal is now before the Supreme Court [1, 7, 8]. Meanwhile, Trump’s Justice Department pursued a criminal investigation into $2.5 billion in renovations at the Fed’s Washington headquarters but dropped the probe in April 2026 after months of scrutiny over excess costs totaling $700 million [2, 7].
Powell described the Fed and other institutions as undergoing a “stress test” amid political disputes. He stressed that the Fed’s credibility, built up over decades, is vital to supporting a stable economy that benefits American families and businesses. “Our credibility has been built and sustained over many decades, and we have a duty to safeguard that priceless asset for our fellow citizens and for generations to come,” he said [6, 3].
On the rule of law, Powell said partisan differences are normal in a democracy but must not jeopardize shared principles. “Partisan political differences are normal – indeed essential – in a thriving democracy. But we ought to be united in our commitment to the higher principles that define our nation. Chief among them is respect for the rule of law,” he noted [6].
Powell emphasized that Federal Reserve decisions are based strictly on economic analysis and the national interest, not political considerations, highlighting the importance of independence in monetary policy [5, 9].
The award ceremony also recognized the people of Minneapolis and St. Paul for their response to immigration enforcement actions [1].
Powell will continue serving on the Federal Reserve Board of Governors through 2028, maintaining an active role in the institution despite his departure as chair [1, 5].
