Fed Chair Powell Praises Volcker's 'Willingness to Resist'

Powell's remarks come as he defends the Fed's independence amid political pressure.

Mar. 21, 2026 at 9:32pm

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Federal Reserve Chair Jerome Powell lauded former Fed Chair Paul Volcker's 'willingness to resist' political pressure as he fought inflation in the 1980s, remarks that have particular resonance as Powell presses his own defense of the Fed's independence amid the Trump administration's efforts to get him to lower interest rates.

Why it matters

Powell's comments underscore the importance of the Fed's independence and integrity, especially as he faces his own political battles over the central bank's policies. Volcker's actions in the 1980s set an important precedent for Fed chairs to make decisions based on economic conditions rather than political pressure.

The details

Volcker ignored his critics and raised interest rates sharply in the early 1980s, triggering a recession but also returning the U.S. economy to price stability. Powell has also fought political battles over Fed independence, with Trump frequently berating him for not easing policy and threatening to try to oust him. The Department of Justice has also opened a criminal probe into Powell's handling of renovations to the Fed's Washington headquarters, which Powell says is an attempt to intimidate him.

  • Powell made the remarks on March 21, 2026 while accepting the Paul A. Volcker Public Integrity Award.
  • Volcker raised interest rates sharply in the early 1980s.

The players

Jerome Powell

The current Chair of the Federal Reserve, who has defended the central bank's independence amid political pressure.

Paul Volcker

The former Chair of the Federal Reserve who raised interest rates sharply in the 1980s to fight inflation, despite facing political pressure.

Donald Trump

The former U.S. President who frequently criticized Powell and threatened to try to oust him from the Federal Reserve.

Lisa Cook

A Federal Reserve Governor who is fighting a move by the Trump administration to fire her over alleged mortgage fraud.

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What they’re saying

“His actions remind us that independence and integrity are inseparable—we need independence to do what is right, and we need integrity to use that independence wisely.”

— Jerome Powell, Chair, Federal Reserve

“Ultimately, each of us will want to look back at the arc of our lives and know that we did what was the right thing. As Paul Volcker showed throughout his career, in the end, our integrity is all we have.”

— Jerome Powell, Chair, Federal Reserve

What’s next

The Department of Justice's criminal probe into Powell's handling of renovations to the Fed's headquarters is ongoing, and a top Republican has vowed to hold up Trump's nominee to replace Powell as long as the probe remains open.

The takeaway

Powell's praise for Volcker's 'willingness to resist' political pressure underscores the importance of the Federal Reserve's independence and integrity, especially as the central bank faces increasing political interference. Volcker's actions in the 1980s set an important precedent for Fed chairs to make decisions based on economic conditions rather than political considerations.