project 2025

2025-2026 Policy Priorities: The Heritage Foundation and Heritage Action are fighting to restore self-governance so that all Americans can live the good life. Conservatives must set the agenda, earn a mandate for that agenda, and govern accordingly. Over the next two years, we will engage in Washington to dismantle the deep state and in the states to restore the family, rebuild American institutions, and restore opportunity for all. We are committed to promoting human flourishing for all Americans and championing the policies that get us there. Heritage will advocate for America to protect its sovereignty, defend its borders, and defeat globalism.

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Barb Van Andel-Gaby, Chairman - Michael W. Gleba, Vice Chairman
Larry P. Arnn, PhD, John Coleman, Edwin J. Feulner, PhD, Robert P. George, DPhil, Ryan Haggerty, Price Harding, Virginia Heckman, Shane McCullar, Rebekah A. Mercer, Abby Spencer Moffat, Nersi Nazari, PhD, Darryle Owens, Kevin D. Roberts, PhD
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​Heritage Foundation:
Despite losing $235 billion, Federal Reserve Chairman Jerome Powell somehow still has a job.

Despite recent significant losses, Jerome Powell remains the Chairman of the Federal Reserve. 
Here's why:

• Operating Losses: The Federal Reserve has experienced two consecutive years of significant operating losses, totaling $191.9 billion in 2023 and 2024 combined, according to the Cato Institute. These losses are primarily attributed to the interest paid on bank reserves, particularly in a rising interest rate environment.
• Accounting Practices: The Fed's accounting practices allow them to defer these losses as an asset, meaning they don't immediately impact the Fed's capital or require additional funding from the Treasury.
• Role and Mandate: The Federal Reserve's primary responsibility is to promote maximum employment and price stability, and its operational decisions are guided by these mandates, not by maximizing profits.
• Not a Profit-Making Entity: The Fed is not a profit-maximizing institution like a private company. While it typically remits profits to the Treasury, periods of losses do not impede its ability to conduct monetary policy or meet its financial obligations.
• Independence: The Fed maintains a degree of independence from political pressure, and the Chair's position is not directly dependent on the Fed's profitability. However, continued losses could potentially attract political scrutiny. 

In short, while the losses are substantial and have generated considerable discussion and debate about the Fed's policies and accountability, they do not automatically lead to the removal of the Federal Reserve Chairman, whose term is set to expire in May 2026. 

​Powell kept the rates too low for too long, facilitating the worst inflation in more than 40 years.

​The argument that Powell kept interest rates "too low for too long" is based on the idea that by maintaining low rates and continuing policies like quantitative easing during the initial stages of the economic recovery from the pandemic, the Federal Reserve (under Powell's leadership) potentially contributed to an overheated economy and fueled the subsequent inflationary pressures. 
Here's a breakdown of the argument:
Low Interest Rates and Stimulus: During the initial phase of the pandemic, the Fed aggressively lowered interest rates and implemented various stimulus measures to support the economy. 
"Transitory" Inflation: Powell and other Fed officials initially described the inflation as "transitory," attributing it primarily to supply-chain disruptions and the reopening of the economy. When inflation proved to be more persistent than anticipated, the Fed embarked on a series of aggressive interest rate hikes in 2022 and 2023 to bring inflation back to its 2% target. This rapid tightening, some argue, caused economic pain and even contributed to the second-largest bank failure in American history. 
It's important to note:
Multiple Causes of Inflation: While monetary policy is a factor, various other elements contributed to the inflation surge, including:
Supply chain disruptions: Global supply chain issues caused by the pandemic and events like the Russia-Ukraine war impacted the availability and cost of goods.
Shifting demand: Consumer spending patterns shifted towards goods during the pandemic, putting pressure on supply chains.
Fiscal stimulus: Government spending measures, such as stimulus checks, also played a role in boosting demand.
Lag Effects of Monetary Policy: The impact of interest rate changes on the economy is not immediate. There is a time lag between when the Fed makes a policy decision and when its full effects are felt. This makes it challenging for policymakers to gauge the precise timing and magnitude of rate adjustments needed to achieve their goals.