Interest rate game is fierce, Powell throws shade at the White House by borrowing from former Fed chairman Volcker.

In the latest speech video, Federal Reserve Chairman Powell stated that former Chairman Paul Volcker set an example for public servants and emphasized the inseparability of "independence and integrity". On Saturday (March 21) local time, the Federal Reserve posted a prerecorded speech video on its official website, with Powell expressing gratitude for being awarded the "Paul Volcker Public Service Integrity Award" by the American Society for Public Administration (ASPA). "Unfortunately, I cannot be there in person today, but I sincerely appreciate this honor and the opportunity to share my thoughts with everyone," Powell said. "Being compared with former Chairman Volcker is a great honor for me." In the early 1980s, then-Fed Chairman Volcker resisted pressure from the White House to lower interest rates by continuously raising rates aggressively, bringing down U.S. inflation from double digits, and playing a key role in cementing the central bank's anti-inflation credibility. Powell said, "Volcker is a giant in the fields of economics and central banking, perhaps the greatest public servant in our economic field. He dedicated his life to selfless service, courage, and holding the highest integrity in serving the public, which has become his precious legacy to the world." Powell mentioned that Volcker was appointed by both Republican and Democratic presidents to serve as Treasury Secretary and Fed Chairman, representing that "apolitical, non-partisan service is the foundation of the Fed, which is best exemplified by Paul Volcker." Powell believes that Volcker's resistance to external pressure when deciding on interest rate hikes demonstrates the "courage and long-term perspective required in the public service sector". "Paul Volcker has set an example that all public servants should emulate. His actions remind us that independence and integrity are inseparable - we need independence to do the right thing and integrity to wisely use that independence." This series of statements is not difficult to associate with Powell's current situation: as the Fed did not lower interest rates as quickly as Trump demanded, Powell and other central bank officials continue to face criticism from the White House. Earlier this week, for the second consecutive time, the Fed decided to maintain the federal funds rate target range between 3.5% and 3.75%. After the decision, several central bank officials indicated that the rate cut plan would be postponed until the end of the Middle East conflict. At a news conference, Powell stated that higher energy prices will temporarily push up overall inflation, but it is still unknown the extent and duration of the impact of the Middle East situation on the U.S. economy. Powell also mentioned that if the nomination of the new Fed Chairman is not promptly confirmed by the Senate, he will serve as the interim Chairman according to the regulations until the new Chairman is confirmed. Powell's term is set to expire in May, and Trump has officially nominated Kevin Warsh to be the next Chairman. However, some Republican senators have indicated that they will not support Trump's nominee until the investigation against Powell is revoked. At the beginning of the year, the U.S. Department of Justice subpoenaed the Fed, threatening criminal litigation against Powell for testifying in June 2025 before the Senate Banking Committee on the renovation project of the Fed building. This article is reprinted from "Finance Alliance", author: Zhao Hao; GMTEight editor: Feng Qiuyi.