I first met Jerome Powell, the departing head of the Federal Reserve, in late 2011. I was working for Barack Obama, and Mr. Powell was interviewing for a job as one of the Fed’s governors. He was not our first choice. To be honest, he wasn’t even our second.
Republicans had already made it clear that we had to rule out any Democrats or else none of our other Fed nominees would get through, which would leave the institution dangerously short-handed.
Summary
The article argues that Jerome Powell will ultimately be remembered less for specific interest-rate decisions and more for defending the independence of the Federal Reserve against political pressure from Donald Trump.
Written by economist Jason Furman, the piece explains that Powell was not originally seen as an obvious choice for the Fed because he lacked a traditional academic economics background. Instead, Furman says Powell stood out for his integrity, calm temperament, and willingness to act independently under pressure.
The article recounts how Powell resisted repeated demands from Trump to cut interest rates aggressively and refused to allow the Fed to become politically controlled. Furman argues this mattered because markets and the broader economy depend on confidence that the central bank will make decisions based on economic conditions rather than presidential demands.
Furman also notes that Powell made major mistakes during the post-Covid inflation surge, especially by initially treating inflation as “transitory.” But he credits Powell for eventually reversing course aggressively enough to help bring inflation down without causing a recession — the rare “soft landing” outcome economists hope for.
A major theme throughout the article is Powell’s personal restraint. Rather than openly fighting Trump politically, Furman says Powell simply continued doing his job despite public attacks, threats of dismissal, and even a Justice Department inquiry into Federal Reserve building renovations. Furman portrays Powell’s calm response as a defense not just of himself, but of the institutional credibility of the Fed itself.
The conclusion argues that future Fed leaders — including incoming chair Kevin Warsh — will need to preserve that same operational independence if the institution is to maintain public trust and economic stability.
