Chairman of the Federal Reserve System Jerome Powell On Wednesday, he explained his controversial decision to appear before the Fed board. lisa cook‘s supreme court The hearing said the incident could have a major impact on the central bank’s independence.

“That case is probably the most important case in the Fed’s 113-year history,” Powell said in a speech Wednesday. Press conference after the Fed meeting. “When I thought about it, I realized it might be difficult to explain why I didn’t participate.”

Mr. Powell last week attended the oral argument This case will decide whether he is president or not. donald trump Cooke could be fired after she was accused of mortgage fraud, an allegation she denies. Treasury Secretary Scott Bessent criticized Powell’s decision to attend. “error” In an interview with CNBC last week, he said the Fed chairman was politicizing the incident.

Powell also noted that former Fed Chairman Paul Volcker “famously” filed a lawsuit before the Supreme Court in the 1980s, but did not say which one. He said this shows there was precedent for Powell to attend.

The Federal Reserve System was established in 1913 under President Woodrow Wilson.

During the hearing, Supreme Court justices appeared skeptical of Mr. Trump’s claim that he had the authority to try to remove Mr. Cook from office, and expressed concern about what such precedent would mean for the Fed’s independence.

Trump has cited allegations of mortgage fraud in his bid to fire Cook, but critics say the move appears to be tied to Cook’s push for lower interest rates. The Supreme Court previously found Cook to remain in her The position is pending oral argument.

Powell’s appearance comes after he revealed earlier this month that he was facing difficulties. Federal Bureau of Investigation Concerning the renovation of the Federal Reserve Headquarters. Politicians and monetary policy watchers have linked the investigation to President Trump’s repeated criticism of Powell for not lowering interest rates at a faster pace.

Both Mr. Powell’s criminal investigation and the attempt to remove Mr. Cook have raised concerns that: The Fed’s longstanding apolitical stance At risk.

Chairman Powell said at a press conference Wednesday that political separation of the Fed is key to ensuring long-term credibility.

“The whole point of independence is not to protect policy makers or anything like that,” Powell said. “It’s just that all developed economies (and) democracies around the world have accepted this common practice.”

If we lose this separation, he says, “it will be difficult to restore the credibility of the institution.”

Looming over Wednesday’s news conference was the realization that President Trump could at any time announce a replacement for Powell, whose term as chairman ends in May. Mr. Powell offered timely advice to the next person taking on the role.

“Don’t get caught up in elected politics,” Powell said. “Please stop.”