Powell’s legacy at the Fed to be shaped by his misjudging inflation and standing up to Trump

Federal Reserve Chairman Jerome Powell speaks at a news conference at the Federal Reserve, following the Federal Open Market Committee meeting, in Washington, Wednesday, April 29, 2026. (AP Photo/Cliff Owen) 2026-05-15T09:00:08Z Washington (AP) — When Jerome Powell was sworn in as chair of the Federal Reserve eight years ago, economists worried that inflation and interest rates were too low and that too few Americans had jobs . Now, as Powell steps down from the post after eight tumultuous years, the U.S. economy is transformed: Inflation soared after the pandemic and has remained above the Fed’s 2% target for more than five years, angering voters and making rents, cars, and groceries harder to afford. The Fed’s key short-term rate rose to a two-decade high in 2023, even as unemployment fell to a half-century low . Along the way, Powell shrugged off relentless personal attacks from President Donald Trump that began just months after his appointment. But in January, he pushed back against an unprecedented legal investigation by the Justice Department, becoming one of the few top officials in Washington to stand up to the Trump White House. Powell said he will continue serving on the governing board until he is confident the Fed’s independence is truly restored. His success at protecting the central bank from day-to-day politics will be a key part of his legacy. “It is not an unblemished record, but in an extremely challenging context, he’s performed exceedingly well,” said David Wilcox, a senior fellow at the Peterson Institute for International Economics and director of research at Bloomberg Economics. “And my overall assessment is that the country has been lucky indeed to have him as chair.” (