Powell Stays at Fed to Guard Independence
Jerome Powell is stepping down as Federal Reserve chair. But he will stay on as a board member.
His board seat runs until January 2028. Kevin Warsh will take over as chair.
By staying on Powell blocks Trump from filling his seat right away. The Federal Reserve board has 7 members.
Powell said Trump's attacks on him were unlike anything seen before. He joked about keeping a low profile in his new role.
His decision is meant to protect the Fed from pressure by the Trump administration. Reports say it is also linked to legal attacks on the Fed.
Sources say these include a Justice Department review of building work at Fed offices. No outgoing Fed chair has stayed on the board since 1948.
Klear Note — The Federal Reserve controls US interest rates and money supply. Fed chairs serve 4-year terms. Trump has publicly criticized Powell's decisions before.
Key Terms 4
- Federal Reserve The US central bank that controls interest rates and money supply
- board member One of 7 people who help run the Federal Reserve
- Justice Department The US government's main law enforcement body
- independence The Fed's ability to make decisions without political pressure