Jerome Powell stays on as Federal Reserve governor after chair term ends
Updated
Updated · The Wall Street Journal · May 6
Jerome Powell stays on as Federal Reserve governor after chair term ends
9 articles · Updated · The Wall Street Journal · May 6
Powell said he will remain on the Fed board after his chairmanship expires on 15 May, an arrangement not seen since 1948.
The move keeps the seven-member board full as Kevin Warsh is expected to become chair, potentially forcing the administration to replace temporary governor Stephen Miran.
It comes after an unusually split 8-4 rate vote, with four dissents signalling strains inside the Federal Open Market Committee over guidance and the Fed's independence.
With a former chairman staying as governor, will a divided Fed board effectively steer the economy?
Can the Fed shrink its balance sheet to enable rate cuts, or is this a risky economic gamble?
How Jerome Powell’s Continued Fed Governorship Challenges Central Bank Independence in 2026
Overview
In early 2025, President Trump's public feud and pressure led to a criminal investigation into Federal Reserve Chair Jerome Powell over a costly renovation project. Despite the grand jury refusing to indict Powell and the DOJ dropping the case in 2026, the investigation cast a shadow over the Fed's leadership transition. In May 2026, Powell made an unprecedented decision to remain on the Federal Reserve Board as a governor after his chairmanship ended, aiming to protect the Fed's independence amid political attacks. This created a unique dynamic with incoming Chair Kevin Warsh, balancing stability and potential internal tension as Powell acted as a defender of the institution while planning a low-profile role.