Former Federal Reserve Chair Jerome Powell warned Sunday that attempts to politicize the central bank would undermine its credibility and cost it public trust.

Powell made the comments in prepared remarks while accepting the John F. Kennedy Profile in Courage Award at the Kennedy Presidential Library and Museum in Boston. It marked his first major public appearance since concluding his eight-year term as Fed chair.

"Democratic institutions take much time, effort, and patience to build but can be torn down all too quickly," Powell said. He added that the Fed's structure was designed to insulate monetary policy decisions from political pressure.

"Congress wisely chose to insulate monetary policy decisions from political pressure," Powell stated. "We do not take into account the fortunes of any political party or politician in making those decisions."

Powell described the central bank as facing a "stress test" and framed political interference as a threat to an institution essential to American economic stability. He urged the defense of democratic institutions more broadly.

The remarks come amid ongoing tensions between the Fed and the Trump administration over interest rate policy and central bank independence. Powell has previously emphasized that the Fed operates based on economic data rather than political considerations.

The Federal Reserve's independence has long been viewed as key to maintaining low inflation and stable employment without short-term political influence. Powell's comments reinforce the importance of that separation as the central bank continues its work under new leadership.