Outgoing Federal Reserve Chair Powell warns his successor: stay away from election politics, be honest in supervision, and trust the Fed team.
Core advice from Powell's remarks: Stay away from politics
At a press conference following the Federal Reserve's monetary policy meeting on January 28, 2026, Powell clearly stated that he advised his successor to "stay away from election politics" and emphasized "not to get involved in election politics" to maintain the independence of the Federal Reserve. He pointed out that if this independence is lost, it would be extremely difficult to rebuild.
This statement came against the backdrop of the Federal Reserve's decision to pause rate cuts and keep interest rates within the range of 3.5% to 3.75%, seen as a response to the Trump administration's continuous pressure to cut rates. Powell resisted political pressure and adhered to the principle of making decisions based on economic data rather than political considerations.
In addition to "staying away from politics," Powell also advised his successor to honestly face supervision, maintain constructive interactions with Congress to gain democratic legitimacy, and trust the professional team within the Federal Reserve.
Powell's advice to his successor stems from conflicts with President Trump, whose root cause lies in differences in monetary policy. Trump continuously pressured the Federal Reserve to significantly cut interest rates to stimulate the economy, while Powell insisted on policy independence and refused political interference, leading to conflict.
The struggle over monetary policy control reflects the structural dilemma of U.S. economic governance - the president seeks short-term stimulation to boost support, while the Federal Reserve needs to ensure long-term stability. Powell upheld the principle of central bank independence, refusing to serve political goals, which led Trump's pressure to escalate from verbal criticism to legal measures, ultimately ending with personnel changes.
As the Federal Reserve Chair, Powell stood firm, unafraid of power, and his spirit is commendable.
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Original: toutiao.com/article/1855865194097664/
Statement: The article represents the personal views of the author.