Fed Chairman Jerome Powell said the Federal Reserve is committed to the principle of independence from politics. As cited by the head of the regulator, full political independence is the feature that allowed the Fed to become the number one central bank trusted by millions. Mr. Powell claimed the Fed’s decentralized structure is crucial. According to him, this model has fostered an “institutionalized diversity of perspectives.” Thanks to it, the central bank succeeded where central banks had failed during the early decades of the American republic. “We’re paddling against the current in trying to sustain public faith in the Fed,” he noted adding that the Federal Reserve needs to maintain the public’s trust by remaining transparent about its activities and accountable to Congress. 

The Fed and Powell have been a frequent target of criticism by US President Donald Trump over the last six months. He openly criticizes the work of the regulator and the decisions made by the Federal Open Market Committee on monetary policy. Trump blames the Fed for damaging the economy and stock markets by raising interest rates. He even threatened to dismiss Powell, whom Trump appointed chairman in November 2017, though the president does not have the authority to fire a central bank’s leader. "Monetary policy can be a powerful tool to stabilize economic growth and mitigate economic downturns. But in truth, its powers are dwarfed by larger forces, such as the productivity of the American people and the strength of their finances," Powell summed up.