Powell could remain at the Fed despite looming end of chair term
Federal Reserve Chair Jerome Powell is set to deliver what is expected to be his final news conference as head of the Fed on Wednesday.The end of his chairmanship next...
By Fox News · Fox News
Federal Reserve Chair Jerome Powell is set to deliver what is expected to be his final news conference as head of the Fed on Wednesday. The end of his chairmanship next month, however, may not mark his departure from the world’s most powerful central bank — and the circumstances are setting the scene for a standoff between Powell and President Donald Trump. If Powell steps aside, it would open a seat for Trump to fill, giving him another opportunity to shape the Fed’s leadership. If he stays, he would retain influence over U.S. monetary policy, intensifying tensions with the president. TRUMP VS THE FEDERAL RESERVE: HOW THE CLASH REACHED UNCHARTED TERRITORY What began as a disagreement over interest rates has escalated into a broader confrontation between Powell and Trump, marking one of the most fraught periods of his eight-years as Fed chair. Trump has intensified his pressure campaign in recent months, publicly criticizing the Fed’s benchmark interest rate decisions and, at times, resorting to personal attacks. Powell’s tenure at the central bank dates back to 2017, when he was selected by Trump to succeed Janet Yellen. He was reappointed to a second four-year term by President Joe Biden in 2022, which expires on May 15. However, his underlying term as a Fed governor runs longer, allowing him to remain at the central bank until 2028. In March, Powell told reporters he had not decided on his next steps and declined to say whether he would remain on the Fed’s board after his term as chair ends. Powell’s decision could now carry major implications for markets and policy — and further inflame those tensions. ONE LITTLE-KNOWN MEETING HELPS DECIDE WHAT AMERICANS CAN AFFORD — AND WHAT THEY CAN’T Attention is now turning to who will lead the Fed next. And at the same time the Supreme Court is expected to weigh-in on a case involving Fed Governor Lisa Cook , which could test the limits of presidential power over the central bank. Trump has selected millionaire Kevin Warsh…