Federal Reserve Vice Chair Philip Jefferson publicly expressed strong support for Fed Chair Jerome Powell on January 16, 2026, calling him “of the highest integrity” in response to recent actions by the U.S. Department of Justice (DOJ). Jefferson’s remarks underscore confidence in Powell’s leadership and the independence of the Federal Reserve amid political pressure.

Jefferson Responds to DOJ Subpoena

Jefferson made the comments following an economics conference at Florida Atlantic University in Boca Raton, Florida. The DOJ had recently subpoenaed the Fed and threatened Powell with criminal charges related to testimony he gave last summer to a Senate committee regarding projections for a Fed building renovation.

“The Chair’s response to the DOJ threats is there for everyone to read,” Jefferson said, emphasizing his personal respect for Powell and his professional conduct during a period of heightened scrutiny.

Powell himself stated in a public video that the DOJ’s actions were a “pretext” connected to President Donald Trump’s ongoing efforts to pressure the Fed for lower interest rates. Jefferson’s support aligns with a broader wave of endorsements for Powell from both domestic policymakers and international observers, including Republican members of Congress who have indicated they may block Trump’s future Fed appointments in response.

Importance of Central Bank Independence

Jefferson highlighted the critical role of central bank independence in sustaining strong economic outcomes. “Countries that have independent central banks also have better economic outcomes,” he said, framing the DOJ actions as a potential threat to the Fed’s ability to make policy free from political influence.

Federal Reserve Bank of Boston President Susan Collins echoed Jefferson’s sentiment, noting that Congress intentionally structured the Fed to act independently. “The central bank is accountable but has the independence required to make the tough calls that may be unpopular in the short term but are essential to delivering price stability and maximum employment over the long term,” Collins said.

Context and Implications

Powell’s term as Fed Chair ends in May 2026, and President Trump is expected to nominate a replacement soon, pending Senate confirmation. The recent DOJ actions have intensified scrutiny of the Fed’s role in setting monetary policy, emphasizing the importance of insulating economic decisions from political interference.

Jefferson’s endorsement reinforces confidence in Powell’s leadership during a time of heightened tension between the Fed and the executive branch. Observers note that the integrity and independence of the Fed remain central to the U.S. economy’s long-term stability, particularly as policymakers navigate challenges in inflation, interest rates, and financial markets.