Powell to stay at Fed after chairmanship ends

What happened

Federal Reserve Chair Jerome Powell said Wednesday he will remain on the Fed Board of Governors “for a period of time to be determined” after his term as chair expires May 15. His announcement came at the end of a two-day policy meeting in which the Fed voted to keep rates unchanged, and shortly after the Senate Banking Committee voted along party lines to advance Kevin Warsh’s nomination to succeed Powell.

Who said what

Powell’s “decision to stay, which he can do until January 2028, breaks with tradition” and denies President Donald Trump the chance to “appoint another governor” until he leaves, The New York Times said. Powell underscored that he was still concerned about the Fed’s independence and “made clear his decision hinged on the outcome of a criminal investigation” of him that the Justice Department has halted, with caveats.

His continuing presence could “make it a bit harder for Warsh to engineer the rate cuts that Trump has demanded,” The Associated Press said. But Powell downplayed concerns about a “‘two Popes’ scenario.” There’s “only ever one chair,” he told reporters. “I’m not looking to be a high-profile dissident.”

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What next?

The Fed’s next policy meeting is June 16-17. “I won’t see you next time,” Powell deadpanned at his last post-meeting press conference.