Jerome Powell to Remain on Federal Reserve Board After Chair Term Ends

Jerome Powell has announced he will remain on the Federal Reserve's governing board after his term as chair ends next month.

This decision comes amid what Powell described as unprecedented legal attacks from the Trump administration against the central bank.

Powell stated he plans to stay on the board for an undetermined period, potentially until January 2028.

By doing so, he prevents President Donald Trump from appointing a new member to the Fed's seven-member board.

The announcement followed the Federal Reserve's decision to keep benchmark interest rates steady at 3.5 to 3.75 percent amid ongoing inflation concerns and global economic pressures.

The Fed's recent policy meeting was Powell's final as chair.

Powell cited the legal challenges as a key reason for his continued presence on the board, expressing concern that these attacks could undermine the institution and harm public trust.

The US Attorney for the District of Columbia recently ended a probe into the Fed's building renovations but indicated the investigation could be reopened if warranted.

The Senate Banking Committee had earlier approved Powell's successor as chair, Kevin Warsh, on a party-line vote.

However, Powell's decision to remain as a governor effectively blocks the president's ability to fill the vacated seat.

The Federal Reserve's decision to hold rates steady reflects ongoing economic uncertainty, including inflationary pressures partly driven by rising global energy prices and geopolitical tensions in the Middle East.

The Fed noted that job gains have remained low and the unemployment rate stable in recent months.

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