Powell appeals for Fed independence

US Federal Reserve Chair Jerome Powell made a fervent appeal Wednesday for central bank independence, as he prepares to cap an eight-year term at its helm marked by insults and legal action under the Trump administration.

Powell’s chairman term ends on May 15, and at his last policy press conference as chief, he announced that he would continue serving as a Fed governor for some time -- even after vacating the top job.

The decision swiftly drew ire from President Donald Trump, who charged that he was only staying as he “can’t get a job anywhere else.”

At his press briefing, Powell gave a lengthy explanation of why central bank independence was key to the economy and the general public.

“We just work directly for the American people,” he said. “We don’t think, oh, I want to do this because the president says it’s a good idea, or because there’s an election coming up and I want to speed up or slow down the economy,” Powell added.

“This isn’t bipartisan. This is nonpartisan,” he said.

The briefing, where Powell appeared more relaxed than previous news conferences, concluded with some applause.

“You want people to make monetary policy and set interest rates to benefit the general public, and try to achieve economic goals, which are maximum employment and price stability, and focus only on that, and ignore political considerations -- completely ignore them,” he said.

The Fed has come under sharp pressure from Trump during Powell’s term, sparking concerns that its cherished independence could be eroded.

Trump has called Powell a “numbskull” and “moron,” lashing out at the Fed chief for not slashing interest rates more aggressively.

His Justice Department also launched an investigation into the Fed and Powell over renovation cost overruns at the central bank’s headquarters.

But the department said last Friday that it would drop the probe for now.

Powell noted Wednesday that the Justice Department has provided assurances that it would not reopen the probe without a criminal referral from the Fed’s inspector general.

He stressed the need to keep the Fed insulated from politics.

Otherwise, he added, “we’d have no credibility.”

“Markets would lose faith in us and our ability to control inflation and have any respect would be gone,” he said.