Jerome Powell: 'After my term as chair ends on May 15, I will continue to serve as a governor' amid Fed pressure
&imwidth=600&imheight=450&format=webp&quality=medium "Jerome Powell: 'After my term as chair ends on May 15, I will continue to serve as a governor' amid Fed pressure")
Jerome Powell during the press conference on Wednesday Photograph: (AFP)
Jerome Powell says he will stay as Fed governor after his term, amid Trump-era legal pressure, rate divisions, and rising political tensions
Jerome Powell said on Wednesday (April 29) that he plans to remain at the Federal Reserve as a governor after his term as chair ends, as the institution faces legal and political pressure under the Donald Trump administration. "After my term as chair ends on May 15, I will continue to serve as a governor for a period of time to be determined," Powell said at what he described as his final press conference as Fed chair. He added that he intends to keep a low profile as a governor and will step down when it is appropriate to do so, saying this is uncommon but not without precedent. Powell remains eligible to serve as governor until 2028.
He emphasised that his decision was not driven by political criticism but by concerns over legal pressure on the institution. Powell has frequently been criticised by Trump, who has pushed for faster interest rate cuts. The administration has also taken actions involving Fed officials, including attempts to remove Governor Lisa Cook over mortgage-related allegations. Meanwhile, the Justice Department opened, and later dropped, a probe into Powell and the Fed over renovation costs, which he described as an attempt to undermine central bank independence.
Powell said he would remain at the Fed until the matter is well and truly over, stressing the importance of keeping the institution free of political influence. He also acknowledged the Senate's advancement of Kevin Warsh, expected to become his successor, saying he expects him to be capable of building consensus. Earlier in the day, the Fed voted to hold interest rates steady for a third straight meeting amid global uncertainty. The rate remains at 3.50%–3.75%. "Inflation is elevated, in part reflecting the recent increase in global energy prices," the central bank said.
Four of 12 officials dissented, the highest level since 1992, reflecting deep divisions within the Fed. The disagreement comes as energy shocks linked to the US-Israel conflict with Iran continue to pressure global markets, raising concerns over inflation and potential future rate hikes. Senate debate over Warsh’s nomination also highlighted political tensions. Senator Elizabeth Warren accused the administration of attempting to seize control of the Fed, while Senator Raphael Warnock warned of persistent threats to central bank independence.
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Republican Senator Thom Tillis ultimately backed Warsh after the Justice Department dropped its probe into the Fed. Powell said of Warsh: “He testified very strongly to that effect in his hearing, and I'll take him at his word.”
