Jerome Powell said he will remain on the Federal Reserve Board of Governors after his term as chair ends on May 15, marking the first such move since 1948.
Powell holds a separate governor term running through January 2028, allowing him to stay on the board even after stepping down as chair.
“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,”
Powell said.
The decision follows a Justice Department probe into the Fed’s headquarters renovation, which was recently closed, though Powell said he will remain until the matter is fully resolved.
His continued presence also prevents an immediate vacancy on the board, limiting additional appointments by Donald Trump beyond the expected confirmation of Kevin Warsh as the next chair.
The Federal Open Market Committee kept interest rates unchanged at 3.5% to 3.75%, citing persistent inflation and uncertainty linked to global energy markets.
Markets reacted modestly, with mixed equity performance and slight declines in crypto prices, as investors assessed the implications for monetary policy and central bank independence.