Profile: Jerome ‘Jay’ Powell, Federal Reserve Chair

THE OBSERVER: If anyone can stand up to Trump, it’s the affable and decisive Fed chair

Jackson Hole, with its stunning views of the Grand Teton mountains, is one of America’s most beautiful escapes. For the past few days, it has been home to Jerome “Jay” Powell and the best friends an embattled Federal Reserve chairman can have – his fellow central bankers. Andrew Bailey, governor of the Bank of England, was there, as was Christine Lagarde, president of the European Central Bank, not least to reassure Powell that the central bankers union has his back as he battles to save the independence of the Fed from an increasingly aggressive president.

Enjoying Wyoming’s fresh air and outdoor pursuits, such as white-water rafting, while debating weighty economic topics with fellow central bankers sure beats donning a hard hat to give an angry Donald Trump a tour of refurbishment work in the Fed building, as Powell did the other week on live TV. Alleging cost overruns of billion of dollars, Trump was fishing for a reason to fire him “for cause”, the only grounds a president can use to dismiss a Fed chair, the 1935 Banking Act having legally protected the independence of the Federal Reserve system from White House interference.

The 72-year-old Fed chair stole the show and lived to fight another day with a carefully curated fact-check of Trump’s wildly wrong numbers. » | Matthew Bishop | Sunday, August 24, 2025

Trump’s Attack on the Fed Ripples Through the Global Economy

THE NEW YORK TIMES: The independence of central banks, which allows policymakers to operate free from political meddling, is considered sacrosanct by investors and economists.

At a recent conference, Christine Lagarde, the president of the European Central Bank, described Jerome H. Powell, the chair of the Federal Reserve, as “the standard of the courageous central banker.”

The room was filled with central bank officials from around the world, who stood to applaud in a public outburst of support for a fellow central banker under relentless assault by President Trump.

Central banks’ independence, which allows policymakers to set interest rates free from political interference, is considered sacrosanct by investors and economists. That’s why the attacks on the Fed, the most important and influential central bank in the world, have reverberated far beyond Washington.

“It’s a signal which is worrisome,” said Stefan Ingves, the former governor of the Riksbank, Sweden’s central bank.

Turmoil in U.S. financial markets risks upending the finances of countries and companies abroad. The yields on long-term U.S. government debt, which serve as benchmarks for interest rates around the world, could spike if Mr. Trump fired Mr. Powell, economists warn. The value of the dollar could sink. » | Eshe Nelson | Reporting from London | Thursday, July 17, 2025

For how much longer must the civilised world tolerate this insanity? – © Mark Alexander

Trump Has Draft of Letter to Fire Fed Chair. He Asked Republicans if He Should Send It.

THE NEW YORK TIMES: The president waved a copy of a draft letter firing Jerome H. Powell at a meeting in the Oval Office with House Republicans. It remains to be seen whether he follows through with his threat.

President Trump showed off a draft of a letter firing the chair of Federal Reserve, Jerome H. Powell, during a meeting with roughly a dozen House Republicans on Tuesday night, polling them as to whether he should do it and indicating that he likely would, according to two people briefed on the meeting.

It remains to be seen whether Mr. Trump will actually go ahead with trying to fire Mr. Powell, a move that some in his administration have cautioned could be calamitous and have far more expansive fallout than the president appears to anticipate.

The meeting in the Oval Office was on an unrelated topic — the House members’ apprehensions about a crypto-related piece of potential legislation. But Mr. Trump used the meeting to discuss what has become one of his favorite topics: his hatred of Mr. Powell, whom he elevated to chair in 2017, during his first presidency.

Speaking from a separate meeting in the Oval Office on Wednesday, Mr. Trump confirmed that he had queried House lawmakers about whether he should fire Mr. Powell but said he had no imminent plans to do so. » | Maggie Haberman and Colby Smith | Wednesday, July 16, 2025

Stocks Plunge after Fed Chair Warns of ‘Pain’ from Inflation Fight

THE NEW YORK TIMES: The S&P 500 fell 3.4 percent, its worst daily showing since mid-June, after the Federal Reserve chair spoke about the path ahead for monetary policy.

Wall Street recoiled on Friday, after the head of the Federal Reserve delivered a stern warning that the central bank’s campaign to lower inflation by raising interest rates is “unconditional” even if it leads to pain for households, businesses and in turn stock prices.

The S&P 500 fell 3.4 percent, its worst daily showing since mid-June, taking its losses for the week to 4 percent. The slump was broad, with every sector of the index lower.

Bond investors also quickly adjusted for more rate increases from the Fed, with the two-year Treasury yield, which is sensitive to rising interest rates, moving close to its highest level of the year at 3.44 percent, before easing back to 3.38 percent.

“While higher interest rates, slower growth and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses,” Jerome Powell, the Fed chair, said during a speech at the Kansas City Fed’s annual conference in Wyoming. “These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain.” » | Joe Rennison | Friday, August 26, 2022

Daily Business Briefing.

US Stocks Worst Day since 2020 amid Recession Worries

THE GUARDIAN: Recession fears are swirling through the markets again, as rising inflation and snarled supply chains hit economies, driving up the cost of living and hitting some company profits.

Last night, US stocks posted the biggest daily drop in almost two years, on concerns that economic growth will falter as central bankers look to raise interest rates to stem the surge in inflation.

Fed chair Jerome Powell’s determination to keep lifting borrowing costs until inflation falls meaningfully has rattled Wall Street, and is likely to push European markets lower today too.

The S&P500 fell more than 4% lower yesterday, Nasdaq slumped more than 5% and the Dow slid more than 3.5%. » | Graeme Wearden | Thursday, May 19, 2022