Federal Reserve Chair Jerome Powell announced on Wednesday that he will remain a governor of the central bank "for a period of time to be determined," extending his influence over monetary policy beyond the end of his term as chair on May 15. Powell’s decision denies President Trump the opportunity to immediately fill a vacancy on the influential Fed board.
Political Interference Concerns
Powell cited ongoing legal and political attacks on the Fed as a primary reason for staying on. "My concern is really about the series of legal attacks on the Fed, which threaten our ability to conduct monetary policy without considering political factors," Powell said during his final press conference as chair. He emphasized the importance of maintaining the Fed’s independence to ensure decisions are based on rigorous analysis rather than political considerations.
"I worry that these attacks are battering the institution and putting at risk the thing that really matters to the public — which is the ability to conduct monetary policy without taking into consideration political factors."
Breaking With Tradition
Powell’s decision breaks with modern precedent, as Fed chairs typically step down from the Board of Governors once their term as chair expires. The last time this occurred was under Marriner Eccles in the late 1940s. Powell stated he intends to maintain a "low profile" in his continued role as governor, adding, "I’m not looking to be a high-profile dissident or anything like that."
Trump’s Response
President Trump criticized Powell’s decision in a Truth Social post, referring to him as "Jerome 'Too Late' Powell" and claiming he remained at the Fed because he "can’t get a job anywhere else." Treasury Secretary Scott Bessent also expressed disapproval, stating Powell’s move "flies in the face of tradition."
Ongoing Investigations
Powell’s announcement follows scrutiny over the Fed’s multibillion-dollar headquarters renovation project, which has been the subject of federal investigations. Powell previously stated he would not leave the board until inquiries were resolved "with transparency and finality." Last week, the U.S. attorney for the District of Columbia indicated the investigation had been closed but left open the possibility of reopening it if warranted.