Powell Stays at Fed After Chair Role Ends
Jerome Powell will stay at the Federal Reserve after May 15. That is when his role as chair ends.
He will remain as a governor instead. Powell said legal threats against him and the Fed pushed him to stay.
This is the first time since 1948 a Fed chair has stayed on the board after stepping down. His governor role runs until January 2028.
At his final press conference on Wednesday Powell called Trump's criticism of him "unprecedented." He also said leading the Fed had been a "privilege." Meanwhile the Senate Banking Committee voted to advance Kevin Warsh as the next Fed chair. The vote was 13 to 11 along party lines.
A full Senate vote is expected soon. Warsh could be confirmed in time to lead the June Fed meeting.
Klear Note — The Federal Reserve controls US interest rates and money supply. Fed chairs lead the central bank for 4-year terms. Staying as governor after is very unusual.
Key Terms 5
- Federal Reserve The US central bank that controls interest rates and money supply
- chair The top leader of the Federal Reserve
- governor A board member of the Federal Reserve below the chair
- Senate Banking Committee A group of senators who review financial and banking decisions
- party lines When politicians vote based on their party not personal views