Federal Reserve Chair Jerome Powell confirmed on Wednesday that he will step down as central bank leader next month but plans to remain a board governor until 2028. This move makes him the first outgoing Fed chair to remain on the board since 1948.
Powell's Departure and Continued Role
During a press conference, Powell stated that his tenure as Chair would conclude on May 15. However, he intends to continue serving as a governor of the Federal Reserve Board.
- New Role: Governor of the Federal Reserve Board.
- End Date: His current board term extends until 2028.
- Historical Note: This marks him as the first outgoing Fed Chair to remain on the board since Marriner Eccles in 1948.
Reasons for Staying on the Board
When questioned about his decision to remain involved, Powell cited ongoing legal challenges against the Federal Reserve as the primary factor influencing his decision.
He stated that the "series of legal attacks on the Fed" threaten the central bank's ability to conduct monetary policy free from political considerations. Powell indicated that the current legal environment left him with no choice but to remain until these issues were resolved.
Furthermore, he emphasized his commitment to remaining until the investigation concerning the Fed's Washington, D.C., headquarters concludes with "transparency and finality."
Future Leadership and Next Steps
Powell used the press conference to congratulate Kevin Warsh on his advancement within the Senate Banking Committee, wishing him well in his future role.
Regarding the future leadership of the Fed, Powell maintained a low profile, stating that the responsibility for future meetings would belong to the incoming leadership.
- He confirmed that Kevin Warsh will assume the role of Chair once confirmed and sworn in.
- As a governor, he stated he plans to "keep a low profile."
