Trump fumes as Jerome Powell plots future at Federal Reserve

Federal Reserve Chair Jerome Powell is drawing backlash from Trump administration figures and allies after announcing his plans to stay at the central bank beyond his chairmanship. 

Powell said Wednesday that he will remain on the Fed board for an undetermined amount of time after Kevin Warsh takes over as chair given the various legal threats he believes the bank still faces. 

While Powell has pledged to keep a “low profile,” top Trump allies are fuming, and some economists say it could lead to a clash on the board of governors between the new and old chair.

“The decision that Powell will make on whether to remain on the board will shape the early term of Kevin Warsh, who appears likely to receive confirmation as Powell’s successor,” Joe Brusuelas, principal and chief economist for RSM US, wrote in a note Wednesday. 

“Should Warsh arrive at the Fed and intend to cut rates, Powell would almost surely end up dissenting if he remains on the board,” he continued. “And that would in effect make Powell the shadow chair well into 2028.” 

Powell’s term as Fed chair ends May 15, but his separate term as a member of the Fed board of governors does not lapse until Jan. 31, 2028. 

The outgoing Fed chair said he plans to stay on as a governor until the probe into his handling of the bank’s renovations is “well and truly over with transparency and finality.” 

The DOJ handed over its criminal investigation into Powell to the Fed inspector general last week, reportedly offering assurances that they would not reopen the probe unless there is a criminal referral. 

While Powell said he was “encouraged” by these developments, he said he is “watching the remaining steps in this process carefully.” 

He also asserted that he would be on his way out of the Fed entirely if not for the criminal investigation. 

“I had long planned to be retiring,” Powell told reporters Wednesday. “The things that have happened in the really, in the last three months have, I think, left me no choice but to stay until I see them through.” 

It is rare for a Fed chair to remain at the central bank following the end of their term. The last time this occurred was in 1948, when Marriner Eccles stayed on as a........

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