Jerome Powell says he’ll stay on Fed board after central bank keeps interest rates unchanged in defiance of Trump

Federal Reserve Chair Jerome Powell's final rate decision saw interest rates held steady due to uncertainty surrounding the duration and impact of ongoing geopolitical conflict. Despite a recent surge in March inflation to 3.3%, the Fed's statement indicated potential rate cuts at its next meeting. However, rising oil prices, influenced by expectations of continued US blockades, could delay rate cuts until 2027, according to an economist. Powell will remain a Fed governor until a Trump administration probe is concluded, despite an attorney's statement that the investigation would be closed. This decision reflects the Fed's balancing act between controlling inflation and stimulating economic growth amidst complex global factors.

The Senate Banking Committee has advanced Kevin Warsh's nomination to be the next chair of the US Federal Reserve. The committee voted 13-11 along party lines, with Republicans supporting the nominee and Democrats opposing him. Warsh, President Trump's choice to succeed Jerome Powell, now moves to the full Senate for confirmation, with a vote potentially occurring as early as May 11. A previous hurdle, Senator Thom Tillis's hold on the nomination pending a criminal investigation into Powell, was removed after the Department of Justice dropped its inquiry, finding no evidence of wrongdoing. Warsh previously served on the Fed Board of Governors from 2006 to 2011.

Federal Reserve Chair Jerome Powell will remain on the Fed's board after his term as chair ends in May, a decision he attributes to ongoing investigations into Fed renovations and a desire to shield the institution from political influence. This announcement came as the Fed kept interest rates unchanged for the third time this year, citing elevated inflation, slow job growth, and Middle East uncertainty, despite President Trump's repeated calls for rate cuts. Powell stated his commitment to the Fed's independence and indicated he would stay until the investigations are fully resolved. The Fed's decision to hold rates steady was supported by most board members, though some expressed reservations about future rate reductions.

Federal Reserve Chair Jerome Powell announced he will remain on the Fed's board after his term as chair concludes next month. Powell stated his decision to stay for an "undetermined period of time" is a response to what he described as "unprecedented" legal attacks on the institution by the Trump administration. He expressed concern that these attacks are damaging the Fed and jeopardizing its ability to serve the public interest. This move prevents President Trump from immediately appointing a replacement to Powell's seat on the seven-member governing board.