Jerome Powell to Stay on Federal Reserve Board After Chairmanship Ends

Powell Will Leave Chair but Stay on Board

Jerome Powell's time as chairman of the Federal Reserve will end on May 15th 2026However, he will not leave the Federal Reserve completely.Powell has decided to stay on the Federal Reserve Board even after he stops being chairman.This is because there is still an open legal investigation about the renovation of the Fed's main office in Washington.The Justice Department stopped the investigation in April 2026 but did not close it fully.Powell will stay on the board until this investigation is fully finished.

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By staying on the Fed's board, Jerome Powell could be doing incoming Chairman Kevin Warsh a huge favor | Fortune

Planner: Fiona Cole

11 hours ago

Helping the New Chairman

Powell's choice to stay on the board also helps the new chairman, Kevin Warsh.Powell's decision means that Stephen Mirren, a governor who was chosen by former President Donald Trump and wants lower interest rates no matter what the economy says, must leave the board.This change removes a strong political voice from the board at an important time.

Warsh will become chairman under strong political pressure.Powell's stating on the board gives Warsh some protection.The Federal Open Market Committee, which makes important money decisions, usually works by agreement.The chairman leads by persuading others, not by forcing decisions.Powell is respected, and his presence may help Warsh handle political challenges better.

Political Pressure and Internal Differences

Donald Trump has asked the Federal Reserve to cut interest rates.He blames high inflation partly on his own tariffs and the war on Iran.Trump has criticized Powell for staying on the board, calling him Jerome Too Late Powell on social media, even though Trump chose Powell as chairman in 2017

Inside the Federal Reserve, there are disagreements about interest rates.At the latest meeting, the Fed kept rates the same, but three important Fed presidents wanted higher rates because inflation is rising again.They did not like the words additional adjustments in the Fed's statement, which they thought suggested the Fed might lower rates too soon.

Even Fed Governor Christopher Waller, who used to support lower rates, now says the Fed should be careful.He warned that many shocks to the economy could keep inflation high for a long time.He said if people think inflation will stay high, they will change how they set prices and wages, which makes inflation harder to control.

Powell’s Final Warning

Before he leaves as chairman, Powell spoke honestly about threats to the Fed.He is worried about legal attacks that could make the Fed think about politics when making money decisions.He said, My concern is really about the series of legal attacks on the Fed, which threaten our ability to conduct monetary policy without considering political factors."

Powell also talked about energy prices and inflation.He said it is hard to make quick decisions about oil price changes because they usually do not last long.He explained that money policy works slowly, and it is better to wait before reacting to oil shocks, especially since inflation has been above 2% for several years.

Inflation Has Stayed High for Five Years

Since 2021 inflation in the U.S. has stayed above the Fed's two percent target.This happened because of many problems like COVID, supply issues, Russia's war on Ukraine, tariffs from the Trump administration, and the war on Iran.These problems made it hard for the Fed to control inflation.

Now Kevin Warsh will become chairman during a difficult time.Powell's decision to stay on the board might be very important.It gives Warsh some support as the Fed faces political pressure and tries to keep the economy stable.