Federal Reserve chair Jerome Powell has decided to remain a central bank governor despite threats from President Donald Trump.
Powell announced Wednesday that he will step down as chair when his term ends May 15, but will remain on the Federal Reserve Board of Governors for an unspecified period, citing attempted political interference, according to an Axios report.
The move allows Powell to continue shaping monetary policy even after his term as chair ends and is replaced with Kevin Warsh, as he is set to remain on the Federal Reserve Board through January 2028. (RELATED: Sen Thom Tillis, A Key Holdout Against Trump’s Fed Nominee, Backs Down, Says He’ll Vote To Confirm)
“I plan to keep a low profile as a governor. There’s only ever one chair of the Federal Reserve Board. When Kevin Warsh is confirmed and sworn in, he will be that chair,” Powell told reporters at his final press conference as chair on Wednesday.
Meanwhile, Trump has escalated his criticism of Powell, warning he could remove him if he does not step down. Speaking to Maria Bartiromo on Fox Business on April 15, Trump said, “Well then, I’ll have to fire him, OK? If he’s not leaving on time. I’ve held back firing him. I’ve wanted to fire him, but I hate to be controversial.”
NEW – Trump says he has held back on firing FED Chair Jerome Powell as, “I hate to be controversial,” but if he doesn’t leave on time, “I will have to fire him.” pic.twitter.com/NyoSQpxqI7
— Disclose.tv (@disclosetv) April 15, 2026
Powell also expressed concern about mounting legal and political pressure on the central bank, warning it could undermine public trust and the Fed’s independence, according to Axios.
“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,” he said.
The Department of Justice (DOJ) announced last Friday that it has dropped a criminal probe into Powell related to the Federal Reserve’s major building renovation project. (RELATED: Senator Confronted Over Call For Jerome Powell To ‘Cash In’ On Fed Post)
In a post on X, U.S. Attorney for the District of Columbia Jeanine Pirro said the Federal Reserve’s inspector general “has been asked to scrutinize the building costs overruns – in the billions of dollars – that have been borne by taxpayers,” adding that “accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry.”
This morning the Inspector General for the Federal Reserve has been asked to scrutinize the building costs overruns – in the billions of dollars – that have been borne by taxpayers.
The IG has the authority to hold the Federal Reserve accountable to American taxpayers. I…
— US Attorney Pirro (@USAttyPirro) April 24, 2026
Powell has also left open the possibility of remaining on the Federal Reserve Board as a way to help preserve the central bank’s political independence.
Powell told reporters last month that he has “no intention” of leaving the Federal Reserve Board of Governors until the investigation is “well” and “truly over.” In the modern era, Fed chairs have typically stepped down from the Board of Governors once their chairmanship ends.
In January, Powell revealed that the Federal Reserve had received grand jury subpoenas related to its multibillion-dollar headquarters renovation project. (RELATED: DOJ Opens Probe Into Fed Chair Jerome Powell)
The investigation was examining whether Powell had committed fraud or misled Congress about the renovations. However, an Obama-appointed judge moved to quash the subpoenas, finding the probe appeared intended to pressure Powell to align with Donald Trump on interest rate cuts or step down.
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