Former Federal Reserve Chair Jerome Powell warned that political pressure on the central bank to cut interest rates amid soaring inflation could undermine investor confidence and derail the current bull market. Speaking at a ceremony where he received the John F. Kennedy Profile in Courage Award, Powell highlighted the risk of the Fed losing its independence under pressure from President Trump, who has publicly criticized Powell and demanded faster rate cuts. The warning comes as new Fed Chair Kevin Warsh, nominated by Trump, takes office at a time when the Consumer Price Index rose 4.2% year over year in May, the fastest pace since April 2023. Powell cautioned that lowering rates in such an environment would erode the central bank's credibility and could trigger a risk-off sentiment that pressures equities.