Powell says Fed has been put through a stress test by political pressure

The former Federal Reserve chair went public Sunday with a blunt warning that the central bank's independence is under sustained political assault.

Jerome Powell said Sunday the Federal Reserve 'has been undergoing a stress test' from political pressure.
Powell's remarks signal growing concern inside Fed circles that institutional independence is eroding.
The warning comes amid repeated public demands from political figures for the Fed to cut interest rates.
Powell did not name any individual but the comments land against a backdrop of White House pressure on monetary policy.
The Fed's next scheduled policy meeting is set for late July.

Jerome Powell warned Sunday that the Federal Reserve is under political siege, saying the central bank “has been undergoing a stress test” as outside pressure mounts on its rate-setting independence.

The former Fed chair made the remarks publicly, offering the most direct signal yet from inside the institution's leadership class that interference from elected officials is no longer a theoretical threat.

Powell did not name specific actors but the comment lands squarely against a documented pattern of White House pressure on the Fed to lower interest rates, a demand Powell and the current board have repeatedly resisted.

The Fed has held the federal funds rate steady in recent months, citing persistent inflation data. Political figures have publicly called that stance wrong and urged faster cuts.

Central bank independence — the firewall between elected government and monetary policy — has been a foundational principle of the Fed since its modern structure was set in the 1970s. Erosion of that principle, economists warn, historically precedes inflationary spirals.

The Fed's next policy meeting is scheduled for July 29–30, where the board is expected to again face pressure over rate direction.