Jerome Powell announced on Wednesday, April 29, that he will remain at the US Federal Reserve (Fed, central bank) as governor at the end of his term as president while he continues to be the subject of political-judicial pressure. Powell has experienced permanent tension with President Donald Trump over the issue of interest rates.
First modification: 04/29/2026 - 17:19 Last modification: 04/30/2026 - 04:07
Jerome Powell, a frequent target of President Donald Trump's ire, ends his term as Fed chief on May 15, but may remain on the board of governors, the central bank's governing body, until the end of January 2028.
"I will leave when I consider it appropriate," he declared at a news conference.
His decision, which breaks with the custom of leaving his successor free, was very poorly received by the Executive.
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"Jerome 'Too Late' Powell wants to stay at the Federal Reserve because he can't get a job anywhere else: no one wants him," Trump said on his social network Truth Social, using the nickname he usually calls him because he believes he didn't cut rates fast enough.
Treasury Secretary Scott Bessent called the decision "a violation of all Fed rules" and "an insult to Kevin Warsh," who is expected to be the central bank's next chief.
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He acts as if "only he can preserve the integrity" of the institution, Bessent said on Fox Business.
Powell, 73, explained that he plans to "keep a low profile" as governor and that he will not leave until the investigation involving him is "fully and truly concluded."
The White House and the Department of Justice reproach him for the cost overruns of the renovation works at the Fed headquarters in Washington. On Friday, a prosecutor close to Trump announced the closure of the judicial procedure, although she did not consider it completely buried.
Trust "in the word" of Trump's nominee
Powell has led the Fed since 2018 at the initiative of Republican Trump and was kept in office during the government of Democrat Joe Biden. But since his return to power in January last year, Trump does not hesitate to question it.
In addition to trying to speed up Powell's departure, Trump tried to sideline Gov. Lisa Cook. The Supreme Court must rule soon on this matter.
"There is widespread concern that this type of thing could continue," Powell said, referring to legal actions against monetary policy makers.
He insisted on the importance of having a central bank focused solely on economic objectives and the general interest, and not on the next election date.
He congratulated Warsh, the former Fed governor (2006-11) appointed by Trump to succeed him, and said that he will trust "his word" when he assures that he will not be influenced by Trump.
A Senate committee with a Republican majority approved Warsh's appointment on Wednesday, paving the way for his final appointment, which must obtain the approval of the full Senate.
Read alsoTrump's nominee to head the Federal Reserve denies that he will be "a puppet" of the president
This unusual transition has partly overshadowed the monetary aspect.
The conclusion of the Fed's two-day closed-door meeting shows that Warsh will inherit a divided institution, unwilling to lower rates in the near future and mired in uncertainty.
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