NEW YORK (Gray Media) – Wednesday, the Federal Reserve announced it would maintain current interest rates following a series of recent cuts. In his first public remarks since becoming the subject of a criminal investigation by President Trump’s Department of Justice, Fed Chair Jerome Powell addressed the decision and defended the central bank’s independence.
Since taking office a year ago, President Trump has consistently pushed for more aggressive interest rate cuts, publicly criticizing Powell for moving too slowly. With Powell’s tenure ending in May, Trump’s expected nomination of a successor has raised concerns among observers about the future autonomy of the Federal Reserve.
During comments to reporters, Powell emphasized the critical importance of public trust in the Fed’s decision-making:
“If people lose their faith that we’re making decisions only on the basis of our assessment of what’s best for everyone for the wide public rather than trying to benefit one group or another…We haven’t lost it, I don’t believe we will, I certainly hope we won’t. But it’s very important and the reason it’s important, it’s enabled central banks generally not to be perfect, but to serve the public well.”
The Department of Justice investigation into Powell centers on his testimony before a Senate Committee regarding Fed building renovations. Powell maintains that the investigation is purely political in nature.
President Trump is expected to announce his nominee for the next Federal Reserve chair in the coming days. The key question facing financial markets and policymakers alike: how much independence will the central bank retain as Trump exerts pressure on its leadership transition?
Powell’s term as chair concludes in May.
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