The US Federal Reserve is often nicknamed the “central bank of all central banks.” This means central banks around the world closely watch its every move. It is without doubt the most important central bank in the world. Many people are curious about the salary of the Fed Chair, assuming it must be exceptionally high.
No! No! No!
In fact, the Fed Chair’s salary is the lowest among the four major central banks: the European Central Bank, the Bank of England, the Bank of Japan, and the US Federal Reserve. The head of the Hong Kong Monetary Authority earns five times more than the US Fed Chair. Poor Jerome Powell, if Donald Trump were to say, “You’re fired!” don’t worry. With your experience and reputation, you could easily join any of those central banks and earn double, triple, even quadruple the pay. They would welcome you with open arms.
It is clear that Jerome Powell is not working just for the money. In Hong Kong there is a term for this: workamania, meaning the love of work for its own sake. In China they call it existence, meaning “heaven wants me to exist to do this work.” In the US perhaps the mindset is, “The society needs me. No one else can do this job, even if offered five times the salary.” Powell works to uphold the independence of the Fed Chair, showing that not even the US president can pressure him to change course. He is uniquely qualified to decide the monetary policy of the United States.
After all, the world’s central bankers are watching him. If Powell were to bow to Trump, other presidents and prime ministers might start pressuring their own central bankers to follow political orders.