Jerome Powell Staying on Federal Reserve After May 15 Term Ends

Today was the final press conference of Jerome Powell as the Chairman of the Federal Reserve. It was an important conference as Powell had some decisions to make regarding his future. His term as the chairman ends on May 15, but he is able to stay on the board as a governor through January 2028. Let’s take a closer look at what he said and what it means going forward for the Federal Reserve. 

Jerome Powell plans on staying on board of Federal Reserve

Jerome Powell has made a decision that is not typical for Federal Reserve chairs. He announced in his opening remarks that he will be remaining on the board as a governer. This is the first time a Fed chair has done this since 1948.

“I worry these attacks are battering this institution and putting at risk the things that really matter to the public.”

Jerome Powell’s decision to do this is due to the “unprecedented” legal attacks by the Trump administration, attempting to remove the independence of the nation’s central bank. Earlier today, the Senate Banking Committee approved Kevin Warsh as Powell’s predecessor. If he is confirmed, he will take the seat currently held by Stephen Miran. 

President Trump has been demanding to have rate cuts, which Jerome Powell has not done throughout the last year-plus. If Powell remains on the board, it can make it more difficult for Warsh to make that decision. U.S. Attorney for the District of Columbia Jeanine Pirro announced on X that her office was ending their probe into the Fed’s building renovations. 

However, this does not end the saga as the office can reopen the investigation. Powell said he was assured that the Justice Department would not open the probe unless there is evidence of criminal activity. Powell did not specify that he would remain as a governor for the remainder of his term. This decision did not bring the closure he seeked though.

“I’m waiting for the investigation to be well and truly over with finality and transparency. I’m waiting for that and I will leave when I think it appropriate to do so.”

WIth the Federal Reserve leaving interest rates unchanged for the third consecutive meeting, it will be interesting to see if things change with a new Federal Reserve chair or if Powell will be a shadow chair while he concludes his term.