Federal Reserve Chair Jerome Powell, in a recently released video address, highlighted former Chair Paul Volcker as a role model for public servants and stressed that "independence and integrity are inseparable." On Saturday, March 21, local time, the Fed posted a pre-recorded speech on its official website, in which Powell expressed gratitude for receiving the "Paul A. Volcker Award for Public Integrity" from the American Society for Public Administration (ASPA).

"While I regret that I cannot be there in person today, I am deeply grateful for this honor and for the opportunity to share a few thoughts," Powell stated. "I am truly humbled to be mentioned in the same breath as former Chairman Volcker."

In the early 1980s, then-Fed Chair Volcker resisted pressure from the White House to cut interest rates, instead implementing a series of aggressive hikes that brought U.S. inflation down from double-digit levels. His actions were crucial in establishing the central bank's credibility in fighting inflation.

Powell described Volcker as "a giant in economics and central banking, perhaps the greatest public servant in our economic sphere." He added that Volcker's "lifetime of selfless dedication, accountability, and serving the public with the highest integrity has become part of his enduring legacy."

Powell noted that Volcker was appointed Treasury Secretary and Fed Chair by presidents from both Republican and Democratic parties, demonstrating that "non-political, non-partisan service is a cornerstone of the Federal Reserve, and Paul Volcker embodied that virtue perfectly."

According to Powell, Volcker’s resolve to raise interest rates despite external pressures exemplified the "necessary courage and long-term perspective" required in public service. "Paul Volcker set an example that all public servants should emulate. His actions remind us that independence and integrity are inseparable—we need independence to do the right thing, and integrity to use that independence wisely," Powell concluded.

These remarks are widely seen as alluding to Powell's current situation: he and other Fed officials continue to face criticism from the White House for not cutting interest rates as quickly as demanded by former President Trump.

Earlier in the week, the Fed left the target range for the federal funds rate unchanged at 3.5% to 3.75% for the second consecutive meeting. Following the decision, several central bank officials suggested that plans for rate cuts would be put on hold until the conflict in the Middle East concludes.

During a press conference, Powell indicated that higher energy prices would likely push up overall inflation in the short term, though the full scope and duration of the Middle East situation's impact on the U.S. economy remain uncertain.

Powell also mentioned that if the nomination of a new Fed Chair is not confirmed by the Senate in time, he will serve as interim Chair until a successor is approved. Powell's term expires in May, and Trump has formally nominated Kevin Warsh as the next Chair. However, some Republican senators have stated they will not support Trump’s nominee until an investigation into Powell is dropped.

Earlier this year, the U.S. Department of Justice served a subpoena to the Fed, threatening criminal charges against Powell related to his June 2025 testimony before the Senate Banking Committee concerning the renovation of the Fed’s headquarters.