Washington: Jerome Powell's term as chairman of the Federal Reserve has officially concluded, marking the end of an eight-year tenure that was marred by significant political challenges. Despite stepping down from the role of chairman, Powell has announced his intention to remain on the Federal Reserve's board of governors. He stated that his continued presence is necessary to safeguard the institution's independence from the Trump administration's alleged attempts to influence its operations.
According to Thai News Agency, Powell emphasized during a press conference following a two-day policy meeting that he will refrain from being a "prominent dissenter" under the expected leadership of Kevin Warsh. Warsh, who has been confirmed by the Senate Banking Committee, is anticipated to be officially appointed as the new chairman by the Senate within the next two weeks, prior to Powell's term expiration on May 15.
Powell highlighted several legal measures initiated by the Trump administration, targeting the Federal Reserve's governance and decision-making processes. These include attempts to remove Lisa Cook from her position as Fed governor and a criminal investigation against Powell himself. He expressed concern that these unprecedented actions threaten the central bank's credibility and could compromise the critical separation between monetary policy decisions and political interests. While he has not opposed Trump's frequent demands for interest rate reductions, Powell firmly rejected the use of legal pressures to coerce the Fed into compliance.
Powell's tenure as one of the seven Federal Reserve governors is set to continue until January 2028, aligning almost with the end of President Trump's term. He indicated that he would decide at a later time whether to remain on the board, advocating for a return to legal and traditional norms that allow the Fed to operate independently and free from political influence.
President Trump, in a post on Truth Social, criticized Powell, accusing him of clinging to his position at the Fed due to a lack of alternative employment opportunities. Trump further threatened to dismiss Powell should he persist in his role on the board of governors.