economy
April 29, 2026
Jerome Powell says he’ll stay on Fed board after central bank keeps interest rates unchanged in defiance of Trump
Chair had said he’d leave after inquiry into building renovations but now says there are ‘remaining steps in the process’ he’s watching
TL;DR
- Jerome Powell will remain on the Federal Reserve board after his term as chair ends in May.
- Powell's decision is influenced by ongoing investigations into Fed renovations and a desire to protect the institution's political independence.
- The Fed kept interest rates unchanged due to elevated inflation, slow job growth, and Middle East uncertainty.
- President Trump has consistently demanded interest rate cuts, criticizing the Fed's current policy.
- The Senate banking committee advanced Kevin Warsh's nomination as the new Fed chair, who may be more inclined to cut rates.
- Powell stated that Fed independence is "at risk" due to "legal assaults" and political interference.
- Higher interest rates have helped reduce inflation from a 9.1% high, with minimal impact on the labor market.
- The justice department dropped its investigation into Powell's role in the renovations, but other investigations may continue.
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