Powell to Stay on Fed Board After May 15, Ending a 78-Year Norm

Federal Reserve Chair Jerome Powell said Wednesday he will remain on the Fed's Board of Governors after his chairmanship ends on May 15, setting aside a long-standing practice under which departing chairs typically also leave the Board. Powell's four-year term as Chair, renewed in 2022, expires May 15. Separately, he holds a 14-year governor term that runs through January 2028, and federal law allows him to continue serving as a governor after stepping down as Chair. "After my term as Chair ends on May 15, I will continue to serve as a governor for a period of time, to be determined," Powell said, adding he plans to keep a low profile in the role. The last time a Fed chair stayed on the Board after leaving the top post was in 1948. Powell linked his decision to the Justice Department's criminal investigation into the Fed's headquarters renovation project, a matter he previously referred to the Fed's Inspector General. On April 24, the U.S. Attorney for the District of Columbia closed the investigation. The DOJ also said it would not reopen the case absent a criminal referral from the Fed's Inspector General. "I have said that I will not leave the Board until this investigation is well and truly over, with transparency and finality, and I stand by that," Powell said. He added he is encouraged by recent developments and is monitoring remaining steps. Powell also congratulated Kevin Warsh, President Trump's nominee to succeed him as Chair. The Senate Banking Committee advanced Warsh's nomination on Wednesday by a 13-11 party-line vote, and full Senate confirmation is expected the week of May 11, 2026. Powell said he will serve as Chair until Warsh is sworn in, noting that "there is only ever one Chair of the Federal Reserve Board." By staying on the Board, Powell avoids creating an immediate governor vacancy, limiting Trump's ability to add another appointment alongside Warsh and slowing any near-term reshaping of the seven-member Board. The move comes after multiple public clashes between Trump and Powell over the past 12 months. On policy, the FOMC voted to hold the federal funds rate steady at 3.5% to 3.75%. Powell cited a 3.5% increase in total PCE prices over the 12 months ending in March, driven in part by higher global oil prices linked to the conflict in the Middle East. Core PCE rose 3.2% over the same period. The unemployment rate was 4.3% in March. Powell said slower job growth reflects reduced labor force participation and lower immigration, alongside softer labor demand. "Monetary policy is not on a preset course, and we will make our decisions on a meeting-by-meeting basis," he said, pointing to elevated uncertainty tied to Middle East developments. Powell closed by reaffirming the Fed's institutional mission, saying he is confident the central bank will continue its work "with objectivity, integrity, and a deep commitment to serve the American people." How long he remains a governor will depend on what he views as sufficient closure in the DOJ matter. Markets finished mixed after Powell's announcement. The Nasdaq rose 9.44 points to 24,673.24, while the Dow Jones fell 280.12 points to 48,861.81. The NYSE Composite declined 84.08 points to 22,751.51, and the S&P 500 edged down 2.85 points to 7,135.95. In crypto trading, bitcoin was at $75,839, down 0.66% over 24 hours, while ethereum fell 1.87% to $2,247.