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Powell, whose term as chair ends May 15, offered no additional timeframe for his plans, saying only he will leave \u201cwhen I think it is appropriate to do so.\u201d<\/p>\n\n<\/button><\/div>\n\n
Federal Reserve Chair Jerome Powell speaks during a press conference on April 29, 2026, in Washington. (Anna Moneymaker\/Getty Images)<\/div>\n
(Anna Moneymaker via Getty Images)<\/p><\/div>\n
<\/button>The move \u2014 which could allow Powell to continue shaping US monetary policy with voting powers until 2028 \u2014 immediately became a new flash point with President Trump and his team.<\/div>\n<\/figcaption><\/figure>\n\n
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Fed holds rates steady, Powell stays as governor<\/p>\n
The central bank’s steady rates mean no immediate relief on borrowing costs while Powell’s move signals a focus on stability as inflation stays above target, pushed up by global oil prices amid the Middle East conflict.<\/div>\n
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Fed meeting live updates: Fed holds rates steady, Chair Powell to remain at central bank with a ‘low profile’<\/div>\n<\/div>\n<\/div>\n<\/div>\n
Trump responded with\u00a0another insulting Truth Social post\u00a0where he said Powell was staying on \u201cbecause he can\u2019t get a job anywhere else.\u201d Treasury Secretary Scott Bessent added in an appearance on Fox Business that it was \u201ca violation of all Federal Reserve norms.\u201d<\/p>\n
The seven members of\u00a0the Board of Governors of the Federal Reserve System\u00a0are confirmed to staggered 14-year terms, while chairs serve for four years at a time.<\/p>\n
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Powell has led the central bank for eight years, serving two terms as chair. He was first nominated by Trump in 2018 and reappointed by former President Joe Biden.<\/p>\n
Warsh, his likely successor, was\u00a0confirmed earlier Wednesday by the Senate banking committee, advancing his nomination to a full Senate vote. But Warsh is not set to take Powell\u2019s position as governor; instead, he is set to fill the seat currently held by Trump ally Stephen Miran.<\/p>\n
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“I plan to keep a low profile as a governor,” Powell promised Wednesday as he praised Warsh. “There’s only ever one chair of the Federal Reserve Board.”<\/p>\n
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Trump was asked on Wednesday, before Powell\u2019s announcement, whether Warsh would be able to convince the members of the committee,\u00a0which held rates steady Wednesday\u00a0with three dissenting votes over the \u201ceasing bias\u201d in the policy statement.<\/p>\n
\u201cWe\u2019ll see,\u201d Trump said, \u201cbut they should.\u201d<\/p>\n
A break from recent precedent<\/strong><\/h2>\nPowell\u2019s decision marks a break from recent history. His immediate predecessors have all left the central bank entirely when their time as the top monetary policy official ended.<\/p>\n
Janet Yellen, Ben Bernanke, and Paul Volcker all resigned their positions as governor the same day that their terms as chairs ended.<\/p>\n
Alan Greenspan\u2019s term as a governor expired in 2006 at the same time as his term as chairman ended,\u00a0according to Federal Reserve records.<\/p>\n
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There is some precedent further back for Powell\u2019s move.<\/p>\n
Arthur Burns stayed on the board for just two months after his term as chair ended in the 1970s. Marriner Eccles stayed on as a governor for three years after his term as chair ended in 1948.<\/p>\n\n<\/button><\/div>\n\n
Construction on the Marriner S. Eccles Federal Reserve Board Building has become a flash point between Jerome Powell and Donald Trump. (Kevin Dietsch\/Getty Images)<\/div>\n
(Kevin Dietsch via Getty Images)<\/p><\/div>\n<\/figcaption><\/figure>\n
Powell\u2019s decision could set up renewed tensions with Trump, who has attacked Powell in starkly personal terms for years, and now appears to be temporarily denied the opportunity to fill Powell\u2019s seat with an ally.<\/p>\n
\u201cI\u2019ll have to fire him,\u201d Trump told Fox Business this month when he was presented with the scenario of Powell \u201cnot leaving.\u201d<\/p>\n
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Press secretary Karoline Leavitt offered a slightly more conciliatory message earlier this week when she said she hadn\u2019t talked to the president specifically about firing Powell if he stayed on as governor.<\/p>\n
\u201cI think the president will be satisfied once Kevin Warsh is confirmed as the Fed chair,\u201d Leavitt said.<\/p>\n
A question of prosecution \u2018finality\u2019<\/strong><\/h2>\nThe core issue for Powell is a criminal investigation into his testimony about renovations at the Federal Reserve\u2019s headquarters.<\/p>\n
In March, he told reporters he hadn\u2019t made a decision about staying on but made clear the status of the investigation was a key factor.<\/p>\n
\u201cI have no intention of leaving the Board until the investigation is well and truly over, with transparency and finality,\u201d Powell said. He repeated those words on Wednesday.<\/p>\n
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That finality question remains a matter of considerable debate, and Democrats have charged that last week\u2019s drawdown from the Department of Justice is far from final.<\/p>\n\n<\/button><\/div>\n\n
President Trump speaks with Federal Reserve Chair Jerome Powell during a visit to the Federal Reserve on July 24, 2025, for a tour of the construction site. (Andrew Caballero-Reynolds\/AFP via Getty Images)<\/div>\n
(ANDREW CABALLERO-REYNOLDS via Getty Images)<\/p><\/div>\n<\/figcaption><\/figure>\n
US Attorney Jeanine Pirro\u00a0announced last week\u00a0her office would \u201cclose our investigation\u201d and hand it over to an internal Fed probe, but she added, \u201cI will not hesitate to restart a criminal investigation should the facts warrant doing so.\u201d<\/p>\n
Sen. Elizabeth Warren\u00a0told Yahoo Finance on Tuesday\u00a0that Trump is determined to continue wielding \u201cthe sword of criminal prosecution\u201d over the Fed. On Wednesday,\u00a0as Warsh\u2019s nomination advanced\u00a0on a party-line vote, she added that Trump continues to \u201ckeep the threats of bogus criminal charges alive.\u201d<\/p>\n
Yet it was enough for Sen. Thom Tillis, a key Republican holdout who was blocking Warsh\u2019s nomination as long as the Powell investigation was unresolved. During Wednesday\u2019s vote, Tillis again slammed the attempt to prosecute Powell, but said \u201cit\u2019s done\u201d based on Department of\u00a0Justice actions and \u201cassurances that they gave me.\u201d<\/p>\n
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Powell, for his part, said, \u201cI am watching the remaining steps carefully.\u201d<\/p>\n
This story has been updated with additional developments.<\/em><\/p>\nBen Werschkul is a Washington correspondent for Yahoo Finance.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"Federal Reserve Chair Jerome Powell announced Wednesday he will remain at the Fed as a governor after his<\/p>\n","protected":false},"author":6,"featured_media":3086,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[12,88,7,48],"tags":[],"class_list":["post-3085","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crime","category-finance","category-news","category-us"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/posts\/3085","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3085"}],"version-history":[{"count":1,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/posts\/3085\/revisions"}],"predecessor-version":[{"id":3087,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/posts\/3085\/revisions\/3087"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/media\/3086"}],"wp:attachment":[{"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3085"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3085"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3085"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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