Source: Fortune
Summary
Jerome Powell announced he will remain on the Federal Reserve’s Board of Governors after his term as chair ends May 15, citing “unprecedented” legal attacks on the central bank’s independence by the Trump administration. Powell expressed concerns about the administration’s actions, which he believes threaten the Fed’s ability to conduct monetary policy without political influence. The decision blocks President Trump from filling Powell’s board seat with a more dovish nominee.
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Powell’s announcement comes after the Fed’s decision to hold the federal funds rate steady, with four officials dissenting. The Senate Banking Committee voted to advance Kevin Warsh, Trump’s nominee, to a full Senate confirmation vote. Powell pushed back on the idea that staying on the board was political, stating he had “no choice” but to stay due to the administration’s actions. He plans to “keep a low profile” as a governor and will not act as a shadow Fed chair.
As Powell remains on the board, he’s essentially saying: “I’m not leaving until the storm passes.”
Author: Evan Null
