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In Jerome Powell's last words as Fed Chair a key message for Kevin Warsh and Trump
Jerome Powell used what is likely his final press conference as Federal Reserve chair to send a direct message to Donald Trump, and incoming nominee Kevin Warsh
Jerome Powell used what is likely his final press conference as Federal Reserve chair Wednesday to send a direct message to President Donald Trump, and incoming nominee Kevin Warsh. The 73-year-old made his speech after the Fed left benchmark interest rates unchanged for a third straight meeting, keeping its short-term rate around 3.6% while signaling future cuts remain possible.
But Powell’s most consequential announcement came when he revealed he will remain on the Federal Reserve Board of Governors after his chairmanship ends May 15.
“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. I plan to keep a low profile as a governor," Powell said. He will remain on the position through January 2028 even as Trump’s nominee, Kevin Warsh, moves closer to confirmation.
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Why Powell says he stayed
Powell made clear his decision was not about politics, but about defending the Fed from what he characterized as escalating institutional threats. He said he had “no choice” but to remain after legal attacks and political pressure raised concerns about the Federal Reserve’s long-term autonomy.
“I worry that these attacks are battering the institution and putting at risk the thing that really matters to the public, which is the ability to conduct monetary policy without taking into consideration political factors,” Powell added.
The Jeanine Pirro warning that changed the equation
A major factor behind Powell’s move appears to be lingering skepticism about the Trump administration’s decision to close its criminal probe into Fed renovation costs. Though prosecutors formally dropped the case, US attorney Jeanine Pirro warned they “will not hesitate to restart a criminal investigation should the facts warrant doing so.”
That caveat, combined with Trump’s public attacks and prior attempts to remove Fed officials, appears to have convinced Powell that stepping away entirely could expose the institution to deeper vulnerability.
Powell’s message to Kevin Warsh
Earlier in the press conference, Powell congratulated Warsh for advancing to a full Senate vote. He said current rates remain "appropriate” to guide inflation back toward the Fed’s 2% goal while maintaining labor-market stability.
He also opened with a measured but optimistic economic assessment, saying “Consumer spending has been resilient,” while noting business investment remains solid despite geopolitical uncertainty.
The Fed’s official statement acknowledged, “Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook,” adding that “Inflation is elevated, in part reflecting the recent increase in global energy prices.”
Rare internal Fed divisions
Wednesday’s decision also revealed unusual fractures inside the Fed. Three officials dissented against maintaining language that hints at future cuts, while Governor Stephen Miran dissented in favor of an immediate cut - the most dissent-heavy Fed meeting since 1992.
