Behind Powell’s High-Stakes Decision to Stay at the Fed
The New York Times • • business
Key Points:
- Jerome H. Powell has decided to remain a Federal Reserve governor after his term as chair ends on May 15, using his leverage to limit President Trump's influence on the Fed's Board of Governors until Powell's term ends in January 2028.
- This decision has drawn sharp criticism from the Trump administration, with President Trump mocking Powell and Treasury Secretary Scott Bessent calling the move a violation of Federal Reserve norms.
- Powell's continued presence is expected to heighten tensions between the Fed and the administration, which has previously pressured him to lower interest rates and threatened to fire him if he did not resign as chair.
- Experts warn that Powell's choice to stay could provoke further conflict, but acknowledge that either staying or leaving carries significant risks for both Powell and the Fed.
