Why was former Federal Reserve chair Jerome Powell able to stand up to President Donald Trump when so many others capitulated—and what are the lessons for other government officials, including Powell’s successor, Kevin Warsh?

Powell’s core strength was his refusal to negotiate on matters of principle. You might call it “The Art of No Deal.” Regardless of the pressure, he wouldn’t compromise the Fed’s power to set monetary policy. Trump threatened repeatedly to fire him, launched a criminal investigation against him, and ceaselessly attacked him. Powell took the pounding, but he didn’t budge.

Why was former Federal Reserve chair Jerome Powell able to stand up to President Donald Trump when so many others capitulated—and what are the lessons for other government officials, including Powell’s successor, Kevin Warsh?

Powell’s core strength was his refusal to negotiate on matters of principle. You might call it “The Art of No Deal.” Regardless of the pressure, he wouldn’t compromise the Fed’s power to set monetary policy. Trump threatened repeatedly to fire him, launched a criminal investigation against him, and ceaselessly attacked him. Powell took the pounding, but he didn’t budge.

We like to celebrate “profiles in courage” in Washington, but we don’t see them very often. Public officials these days perpetually criticize their political enemies, which costs them nothing. Rarely do they take on people on their own side. That’s what makes Powell so unusual. He is a Republican, nominated in late 2017 by Trump, who would not comply with his patron’s improper demands.

Powell’s “High Noon” moment came Friday, Jan. 9, 2026, when he was in Florida relaxing with his wife. He learned that the Fed was subpoenaed in a Justice Department criminal investigation of his supposed management of Fed building renovations. Rather than seek an escape from prosecution, Powell flew back to Washington to record a defiant response in the Fed’s television studio.

“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the........

© Foreign Policy