Jerome Powell to Remain Fed Governor After Chairmanship, Prompting Trump-Era Backlash

Jerome H. Powell announced he will stay on the Federal Reserve’s Board of Governors after his chair term ends on May 15, 2024, extending service until Jan 31, 2028. He said he will remain “until the investigation … is resolved with transparency and finality.”

The Hill

The DOJ transferred a criminal probe of the Fed’s $2.5 billion renovation to the Fed inspector general. The last chair to stay on the board after stepping down was Marriner Eccles in 1948.

The Hill

Jerome H. Powell (outgoing chair, governor until 2028); Kevin Warsh (Trump’s nominee, confirmed 13-11); Donald J. Trump (former president, critic); Scott Bessent (Treasury Secretary); Elizabeth Warren (Senate Democrat).

NPR

The Fed left its benchmark rate at 3.6 % after an 8-4 vote, the narrowest split since 1992. PCE inflation rose to 3.5 % in March, above the 2 % target, while unemployment fell to 4.3 %.

Associated Press

Powell pledged a “low profile” as a governor and emphasized staying until the probe is resolved. Treasury Secretary Scott Bessent said the move violated Federal Reserve norms. The Senate Banking Committee’s 13-11 vote signals the new chair’s alignment with Trump’s rate-cut agenda.

Fed holds rates steady as Powell reveals his future plans

Trump’s allies called Powell “a negative force” and suggested he stays because “nobody wants him a job.” President Trump posted that Powell “can’t get a job anywhere else.” Senator Warren warned Warsh’s confirmation could give Trump “complete control” of the Fed and described the plan as “chaos” for families.

The Hill

Analysts differ on Powell’s exit: some expect he could stay until the end of 2026, after which a Democratic Senate might block a Trump appointment; others note the DOJ investigation has been “closed” pending a criminal referral, leaving the probe’s future uncertain.

The Hill

Powell’s continued presence could create a “two-Popes” dynamic, allowing a former chair to influence policy alongside Warsh and potentially temper the administration’s push for rate cuts. The episode also tests Fed independence amid a DOJ probe, inflation above target and volatile energy markets.

Fed holds rates steady as Powell reveals his future plans

Warsh’s confirmation is expected within weeks, after which the Senate will consider the remaining board seat. A shift to Democratic control before Powell’s term ends could block a second Trump-appointed governor. The DOJ’s appeal of the subpoena-quashing ruling may affect the renovation probe’s timeline and Powell’s stay.

The Hill

• “I had long planned to be retiring.” — Jerome Powell, Federal Reserve Chair

Fed holds rates steady as Powell reveals his future plans

• “Jerome ‘Too Late’ Powell wants to stay at the Fed because he can’t get a job anywhere else — Nobody wants him,” — Donald J. Trump, President

The Hill

• “I don’t care. If he stays on, he stays on,” — Donald J. Trump, President

The Hill

• “It’s highly unusual for someone who says he’s an institutionalist and cares about norms at the Fed,” — Scott Bessent, Treasury Secretary

The Hill