Jerome Powell to Remain on Federal Reserve Board After Chair Term Ends

Federal Reserve Chair Jerome Powell announced on Wednesday that he will remain on the Fed's board as a governor after his term as chair concludes on May 15. Powell expressed concerns that legal actions by the Trump administration pose a threat to the central bank's independence.

"I worry these attacks are battering this institution and putting at risk the things that really matter to the public," Powell stated during a press conference following the Fed's decision to keep its benchmark interest rate unchanged.

By choosing to stay, Powell prevents President Donald Trump from immediately filling a vacancy on the Fed's seven-member governing board. This marks the first time since 1948 that a Fed chair will continue serving on the board after their term ends.

The Senate Banking Committee has approved Trump's nominee, Kevin Warsh, to succeed Powell as chair. Warsh, a former Fed official and critic of Powell's leadership, has advocated for interest rate cuts, aligning with Trump's economic stance. However, with inflation at 3.3%, above the Fed's 2% target, implementing such cuts may prove challenging.

Powell emphasized his intention not to interfere with Fed policies but remains deeply concerned about the institution's independence amid ongoing legal challenges.

President Trump criticized Powell's decision on social media, stating, "Jerome 'Too Late' Powell wants to stay at the Fed because he can't get a job anywhere else — Nobody wants him."

Analysts suggest that Powell's continued presence could complicate Warsh's efforts to implement policy changes, potentially leading to internal divisions within the Fed's leadership.