Jerome Powell Says He Will Stay on Federal Reserve Board After Chair Term Ends in May

Federal Reserve chair Jerome Powell said he will remain on the Federal Reserve Board as a governor after his term as chair ends in May, a decision he framed as necessary because of legal and political pressure from the Trump administration.

Powell made the announcement after the Fed board left interest rates unchanged for the third time this year, with CoinDesk citing the decision to hold rates steady at 3.5%-3.75% and the Guardian describing the move as “left interest rates unchanged for the third time this year.”

ABC News

Powell said he was “encouraged” by the justice department’s decision to drop its investigation but still saw “remaining steps in the process” he was watching carefully, according to the Guardian.

At the same time, Powell told reporters he was “encouraged” by the justice department’s decision to drop its investigation while emphasizing that “The things that have happened really in the last three months, I think, have left me no choice but to stay until I see them through at least that long,” as quoted by the Guardian.

The Guardian also reported that Powell’s term as chair ends on 15 May and that his term as Fed governor ends in January 2028.

The Washington Post described the move as denying Trump “the opportunity to fill another vacancy at the central bank,” while Mint and Mortgage Professional America both reported Powell’s intent to keep a “low profile.”

In a separate account, Mint said Powell signed off his last press conference as chair with “You won’t see me next time” while stressing his intent to remain on the board as a governor.

Powell’s decision to stay came as the Fed held its benchmark rate steady and as the justice department’s handling of a criminal investigation remained central to the dispute over independence.

CoinDesk reported that although the Trump administration suspended its criminal investigation into Powell, officials left open the possibility of reopening the case, and it quoted Jeanine Pirro, the U.S. attorney for the District of Columbia, saying the matter would stay under review by the Fed’s inspector general and that prosecutors could reopen it if new facts emerged.

Al Jazeera

The Guardian similarly described Powell’s stance after the justice department dropped its investigation, saying he was “encouraged” but still watching “remaining steps in the process.”

The Guardian also tied the Fed’s rate decision to macroeconomic conditions, quoting the board statement that “Jobs gains have remained low, on average, and the unemployment rate has been little changed in recent months,” and that “Inflation is elevated, in part reflecting the recent increase in global energy prices.”

It added that the Fed meeting ended hours after the US Senate banking committee confirmed Kevin Warsh, clearing a procedural path for the whole Senate to confirm him as new chair, and it noted Warsh was expected to be more amenable to Trump’s calls for a rate cut.

Mint and Mortgage Professional America both emphasized that Powell was waiting for the investigation to be “well and truly over with transparency and finality,” with Mortgage Professional America quoting Powell’s line that “I've said that I will not leave the Board until this investigation is well and truly over with transparency and finality, and I stand by that.”

In that same account, Mortgage Professional America quoted Powell saying “My concern is really about the series of legal attacks on the Fed, which threaten our ability to conduct monetary policy without considering political factors,” and it described Powell’s view that the legal actions were “unprecedented in the 113-year history.”

The Guardian also reported that Powell said the Fed “doesn’t get pulled into politics, trying to help or hurt any politician or political party,” and it placed that warning alongside the Fed’s wait-and-see approach.

Across outlets, Powell’s remarks repeatedly returned to the theme that the Fed must not be pulled into politics and that legal actions were threatening its ability to set policy independently.

The Guardian quoted Powell saying it was important that the Fed “doesn’t get pulled into politics, trying to help or hurt any politician or political party,” and it also quoted him warning that “The things that have happened really in the last three months, I think, have left me no choice but to stay until I see them through at least that long.”

CoinDesk similarly quoted Powell saying, “I worry that these attacks 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,” and it described Powell’s fear that legal and political attacks were undermining the Fed’s independence.

Mint added Powell’s emphasis that he planned to keep a “low profile” and included his statement that “There is only ever one chair of the Federal Reserve Board. When Kevin Warsh is confirmed and sworn in, he will be that chair.”

Mortgage Professional America quoted Powell’s insistence that he was not taking a political stance when asked whether staying meant he was blocking Trump, quoting him: “I don't see that at all,” and it added Powell’s explanation that “As I mentioned, I'm literally staying because of the actions that have been taken.”

In the same account, Powell offered a broader defense of independence, saying “Part of it is the law, but it goes beyond that,” and it quoted him describing “There's a set of customs. There's a boundary line between the Fed and the administration, between the Fed and the Treasury Department.”

The Guardian also reported that Powell said he would step down from the board when White House investigations into renovations at the Fed are “well and truly over with transparency and finality,” and it quoted his view that he was watching “remaining steps in the process.”

Together, the quotes show Powell’s argument that staying was tied to process and institutional boundaries rather than a desire to influence the next chair.

The Fed’s decision to hold rates steady was accompanied by internal disagreement and by the political timing of Kevin Warsh’s confirmation process, which shaped how outlets described the significance of Powell’s stay.

The Guardian reported that while only one of the board’s 12 voting members voted against leaving the rate unchanged, three members supported maintaining the current rate but did not agree with the Fed suggesting it will lower rates later this year.

AP News

CoinDesk highlighted that dissent from three Governors stood out, citing analyst Matt Mena’s comment that “those three dissenters calling for a strike on any easing guidance threw a bucket of ice on the market’s pivot party.”

The Guardian also said the Fed meeting ended hours after the US Senate banking committee confirmed the former Fed governor Kevin Warsh, clearing a procedural path for the whole Senate to confirm him as new chair of the central bank.

It added that Warsh was expected to be more amenable to Trump’s calls for a rate cut than Powell, and it emphasized that with just one vote of 12 on the Fed’s rate-setting board, Warsh cannot deliver cuts without support from fellow board members.

Mint and Mortgage Professional America both quoted Powell congratulating Warsh and framing his role as chair, with Mint quoting Powell: “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,” and Mortgage Professional America repeating Powell’s congratulations and saying “When Kevin Warsh is confirmed and sworn in, he will be that Chair.”

CoinDesk also connected the rate hold to markets, saying “The hawkish tone weighed on risk assets” and that “Markets may begin to price a [Kevin] Warsh pivot that favors rate cuts,” while it also mentioned “the imminent passage of the CLARITY Act.”

The Guardian, meanwhile, described the Fed’s rationale for leaving rates untouched as including uncertainty in the Middle East, and it quoted the board’s statement about jobs, unemployment, and inflation.

While all the sources describe Powell’s decision to remain on the Fed board, they frame its meaning differently, emphasizing either institutional independence, political conflict, or procedural timing.

The Guardian presents the move as “a contentious move that signals continued uncertainty at the Fed,” and it links Powell’s stay to “Donald Trump’s continued demands for rate cuts,” while also quoting Powell’s insistence that he was watching “remaining steps in the process.”

BBC

The Washington Post frames the decision as a direct denial of Trump’s ability to fill another vacancy, describing Powell’s action as “denying Trump the opportunity to fill another vacancy at the central bank.”

South China Morning Post similarly emphasizes the political effect, saying Powell’s decision “would deny the US president a chance to fill the seat on the central bank’s seven-member governing board with his own appointee,” and it quotes Powell’s “unprecedented” characterization of the legal attacks.

CoinDesk, in contrast, foregrounds the mechanics of legal pressure and the Fed’s independence, reporting that Powell fears “legal and political attacks are undermining the Fed’s independence” and that the Trump administration suspended its criminal investigation while leaving room to reopen it.

Mortgage Professional America and Mint both stress Powell’s personal intent to keep a “low profile” and to wait until the investigation is “well and truly over with transparency and finality,” with Mint adding Powell’s “You won’t see me next time” sign-off.

The Guardian and Mint also differ in how they describe the timing of Powell’s chair term end: the Guardian says his term as chair ends on 15 May, while Mint says “After my term as chair ends on May 15,” and it also notes his seat on the Board of Governors “doesn’t expire until 2028.”

The Guardian further adds a broader economic context by quoting the Fed’s statement about inflation and energy prices and by reporting Brent crude oil briefly hit $119 a barrel on Wednesday, a monthly high and a 7% jump over the course of a day as uncertainty around the war in Iran looms.

The sources portray the next phase as a combination of ongoing legal review, the transition to Kevin Warsh, and continued uncertainty in the economic outlook that the Fed said it would weigh in its dual mandate.

Powell said he would stay “until I see them through at least that long,” and the Guardian reported that he was “watching carefully” “remaining steps in the process” even after the justice department dropped its investigation.

CoinDesk reported that Jeanine Pirro said the matter would stay under review by the Fed’s inspector general and that prosecutors could reopen it if new facts emerged, meaning Powell’s stay is tied to the possibility of further legal pressure.

Mint and Mortgage Professional America both quoted Powell saying he planned to keep a “low profile” and that he would not leave the board until the investigation was “well and truly over with transparency and finality.”

The Guardian also reported that the Fed’s meeting ended hours after the Senate banking committee confirmed Kevin Warsh, and it described Warsh as expected to be more amenable to Trump’s calls for a rate cut, while noting Warsh cannot deliver cuts without support from fellow board members.

In CoinDesk, analyst Matt Mena said markets were shifting focus to potential policy changes ahead, including “the imminent passage of the CLARITY Act,” and it added that “Markets may begin to price a [Kevin] Warsh pivot that favors rate cuts.”

The Guardian’s economic framing emphasized that the Fed cited “elevated inflation, slow job growth and uncertainty in the Middle East” as reasons for leaving rates untouched, and it quoted the board statement about jobs, unemployment, and inflation tied to energy prices.

It also reported that Brent crude oil briefly hit $119 a barrel and rose 7% over the course of a day as uncertainty around the war in Iran looms, linking commodity volatility to the Fed’s caution.