Jerome Powell to Remain on US Federal Reserve Board Following Term as Chairman

Federal Reserve Chairman Jerome Powell to Step Down as Chair, Remain as Governor

After his term as chair ends on May 15, Jerome Powell will continue to serve as a governor for a period of time to be determined, he announced at a press conference on Thursday, April 30. The press conference was broadcast at midnight in India following the US Federal Reserve's policy outcome for the April meeting.

Powell's decision to stay on as governor, despite his term as chair ending on May 15, will deny US President Donald Trump a chance to fill a seat on the central bank's seven-member governing board with his own appointee. Powell's seat on the Board of Governors doesn't expire until 2028.

According to Powell, his decision to remain on the Fed's board as governor is due to the "unprecedented" legal attacks against the central bank by the Trump administration. He plans to keep a "low profile" in his new role as a governor and will try to support the central bank's prospective next chair, Kevin Warsh, without attempting to wield outsized influence over monetary policy.

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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.

The US Federal Reserve kept the interest rates unchanged 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 favor of removing the reference to a future cut, while a fourth, Stephen Miran, dissented in favor of an immediate rate cut.

In a statement, the Fed said, "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."

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