“You won’t see me next time” is how Jerome Powell signed off his last press conference as the US Federal Reserve’s chairman, while stressing his intent to remain on the central bank’s board as a governor on Thursday, 30 April, amid legal actions by the 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 the press conference that was broadcast at midnight on Thursday in India following the US Federal Reserve‘s policy outcome for the April meeting.
He stressed that he plans to keep a “low profile” in his new role as a governor. “There is only ever one chair of the Federal Reserve Board. When Kevin Warsh is confirmed and sworn in, he will be that chair,” Powell said.
Powell’s term as Fed chair ends on May 15, but his seat on the Board of Governors doesn’t expire until 2028. According to an AP report, Powell’s decision to stay denies US President Donald Trump a chance to fill a seat on the central bank’s seven-member governing board with his own appointee.
What prompted Powell to stay on as Governor?
In his press conference, Powell said that he plans to remain on the Fed’s board as governor “for an undetermined period of time, citing “unprecedented” legal attacks against the central bank by the Trump administration.
I’m waiting for the investigation to be well and truly over with finality and transparency, Powell told the reporters. “I’m waiting for that, and I will leave when I think it appropriate to do so.”
He added that the attacks by the administration 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.
He also added that he will try to support the central bank’s prospective next chair, Warsh and not try to act as a “shadow chair” who attempts to wield outsized influence over monetary policy.
“I want to congratulate Kevin Warsh on his advancement out of the Senate Banking Committee this morning. This is an important step forward, and I wish him well as that process continues,” Powell told reporters.
The Senate Banking Committee earlier on Wednesday approved Trump nominee Warsh as Powell’s replacement.
The US Justice Department said last Friday that it is ending its criminal investigation into Powell, amid concerns about ongoing attacks by Trump on the independent central bank. US Attorney Jeanine Pirro said on X that she had ordered the probe to be closed.
She added that the Federal Reserve’s inspector general will now review the issue of rising renovation costs at its headquarters, which the Justice Department had been examining. However, she noted that a criminal investigation could be reopened if new evidence justifies it.
Meanwhile, Trump has repeatedly broken with Washington norms by criticising the Fed for not cutting interest rates faster and has also made personal attacks on Powell.
US Fed outcome
The US Federal Reserve kept the rates unchanged at 3.5%-3.75% for the third time in a row as it grapples with the impact of higher crude oil prices on inflation amid the ongoing Middle East conflict, which has entered its third month.
Three officials dissented in favour of removing the reference to a future cut, while a fourth, Stephen Miran, dissented in favour of an immediate rate cut.
“Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook. The Committee is attentive to the risks to both sides of its dual mandate,” the Fed statement said.
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