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In his eight years as chairman of the Federal Reserve, Jerome Powell faced a variety of economic challenges, from double-digit unemployment during the pandemic to the highest inflation in four decades. But Powell's tenure may be best remembered for the way he stood up to political pressure from President Trump. The former Fed chairman was recognized for that response last night. NPR's Scott Horsley reports.
SCOTT DETROW, BYLINE: Jerome Powell was presented with a Profile in Courage Award by the John F. Kennedy Library Foundation. Kennedy's daughter Caroline said by not backing down in the face of relentless pressure, Powell helped protect the Fed from an unprecedented White House campaign to put the president's stamp on monetary policy.
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CAROLINE KENNEDY: With dignity and resolve, he demonstrated his commitment to the American people and America's leadership role in the global economy, despite years of personal attacks, baseless prosecution and efforts to undermine him.
DETROW: Powell acknowledged, even in the best of times, the Fed has to make decisions about interest rates and other policies with incomplete information. Sometimes he and his colleagues make mistakes. When they do, Powell says, they admit it and course-correct.
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JEROME POWELL: What the public has every right to expect is that we will make our decisions based only on our best economic analysis of what would most benefit the people we serve. We do not take into account the fortunes of any political party or politician in making those decisions.
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DETROW: During his first term in office, President Trump regularly criticized Powell for not cutting interest rates more aggressively. During his second term, Trump's done more than criticize. He's threatened to fire Powell, tried to fire another Fed governor and even had his justice department launch a criminal investigation of the central bank. Powell refused to buckle under those attacks. Had he done so, he says, the Fed's credibility would be lost.
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POWELL: The philosopher Edmund Burke warned that democratic institutions take much time, effort and patience to build, but can be torn down all too quickly. It is essential that we preserve what is good in our institutions even as we strive to improve them.
DETROW: Powell's term as Fed chairman ended last month, but in an unusual move, he elected to stay on the central bank's governing board for a while longer. At last night's award ceremony, that was described as another act of courage to help safeguard the Fed from political interference. The Kennedy Library also presented a Profile in Courage Award to the people of Minneapolis and St. Paul for risking their lives to protect neighbors from the government's aggressive immigration crackdown. Scott Horsley, NPR News, Washington. Transcript provided by NPR, Copyright NPR.
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