Fed boss Powell steps down
After two terms in office, Jerome Powell will resign as US Federal Reserve Chair this Friday. His track record as head of the US central bank is mixed. Critics accuse him of mistakes, particularly in the fight against inflation. But when Donald Trump threatened to undermine the Fed's independence, he stood firm against the US president. Powell will be succeeded by Trump's preferred candidate, Kevin Warsh.
He stood up to Trump
Outgoing Fed Chair Jerome Powell has set a good example for his successor, notes L'Echo:
“Jerome Powell will be remembered for one thing above all else: that he was the one who stood up to Trump to safeguard the Fed's independence and, by extension, its credibility. ... His decision to seek confrontation under these circumstances testifies to his tenacity and strong sense of responsibility. The Fed's independence is a factor that must not be underestimated, for the stability of US markets rests on the credibility of the US central bank – and, given its clout, so does that of the global financial system as a whole. In this respect, 'Soldier Powell's' courageous conduct deserves recognition. Let's hope that his successor takes inspiration from it.”
Hero narrative with omissions
The Neue Zürcher Zeitung sees room for improvement in the Fed leadership:
“The man who currently wields the most control over monetary policy will go down in the history books mainly because he managed to fend off all attempts by US President Donald Trump to pressure the Fed into cutting key interest rates. Although this heroic narrative is not incorrect, it doesn't tell the whole story. Under Powell, the Fed has also made serious mistakes that have damaged the institution's credibility and independence. If his successor, Kevin Warsh, wants to strengthen the Fed's autonomy, he must do more than simply say no to Trump.”