Jay Powell warns Federal Reserve is undergoing ‘stress test’ - FT中文网
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Jay Powell warns Federal Reserve is undergoing ‘stress test’

Former chair says Donald Trump’s attempts to fire central bankers undermine the rule of law
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{"text":[[{"start":7.55,"text":"Jay Powell has said the US Federal Reserve is in the throes of a “stress test” that threatens the strength and stability of the world’s largest economy, claiming Donald Trump’s attempts to fire central bankers undermine the rule of law. "}],[{"start":22.05,"text":"Powell, who last week returned to the role of Fed governor after an eight-year stint as chair, said in Boston on Sunday that the Fed was “like many other [US] institutions . . . undergoing a stress test”. "}],[{"start":34.4,"text":"“If any administration finds a way to remove Fed officials over policy differences, then future administrations will do so as well,” Powell added, in a speech as he accepted this year’s John F. Kennedy Profile in Courage Award. "}],[{"start":49.7,"text":"“The public would lose faith that the central bank will make decisions based only on what’s best for all Americans. The Fed’s credibility would be lost. That credibility enables the Fed to support a strong and stable economy.”"}],[{"start":63.650000000000006,"text":"While Powell did not mention Trump personally in prepared remarks, the US president had labelled Powell a “numbskull” and “moron” over his refusal to drastically lower US borrowing costs. "}],[{"start":75.35000000000001,"text":"Jeanine Pirro, the US attorney for the District of Columbia and a Trump ally, also launched a criminal investigation into Powell over his handling of a $2.5bn renovation of the Fed’s headquarters. The Department of Justice has since handed responsibility for investigating $700mn in cost overruns on the renovation to the Fed’s inspector general. "}],[{"start":96.75,"text":"Trump also attempted to sack Powell’s fellow Fed governor Lisa Cook over allegations of mortgage fraud, for which she is yet to be charged. Cook, who has denied the allegations, was given the right to remain at the Fed by the Supreme Court while judges prepare to opine on her case against the US president. "}],[{"start":114,"text":"The Fed retains the right to set interest rates free from pressure from the executive branch and is accountable to Congress. "}],[{"start":120.8,"text":"“Partisan political differences are normal — indeed essential — in a thriving democracy,” Powell said. “But we ought to be united in our commitment to the higher principles that define our nation. Chief among them is respect for the rule of law.” "}],[{"start":136.4,"text":"After his term as Fed chair ended in May, Powell took the unusual position of staying on as a governor, the first chair to remain at the central bank for almost 80 years. His decision was driven by concerns over the administration’s threats to the Fed’s independence."}],[{"start":153.35,"text":"Trump said at the swearing-in of Powell’s successor, Kevin Warsh, at the White House that he wanted the new Fed chair “to be totally independent”. "}],[{"start":162,"text":"“I want him to be independent and just do a great job. Don’t look at me, don’t look at anybody. Just do your own thing,” the US president said minutes before Warsh was sworn into office by Supreme Court justice Clarence Thomas. "}],[{"start":178.15,"text":"“Other countries know us as a nation built on integrity, and that integrity must be maintained,” Powell said in his first public comments since he stepped down as Fed chair. “President Kennedy upheld that tradition and resisted the expansion of authoritarianism, which is the antithesis of American values.” "}],[{"start":196.70000000000002,"text":"Powell added: “He embraced and worked to strengthen the system of international economic and security arrangements that has now been in place for some 80 years — arrangements that have supported democracy and freedom and served the United States and the world extremely well.”"}],[{"start":218.40000000000003,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1780284761_1520.mp3"}

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