Jerome Powell says he’ll stay on Fed board after central bank keeps interest rates unchanged in defiance of Trump

Key Points:

• Federal Reserve Chair Jerome Powell announced he will remain on the Fed’s rate-setting board after his chair term ends in May, citing ongoing investigations and the need for transparency before stepping down.
• The Fed left interest rates unchanged for the third time this year amid concerns over elevated inflation, slow job growth, and geopolitical uncertainty, despite pressure from former President Trump for rate cuts.
• The Justice Department recently dropped its investigation into Powell related to Fed building renovations, but some political and procedural hurdles remain, including ongoing inquiries and Senate confirmation delays for former Fed Governor Kevin Warsh.
• Warsh, expected to be more supportive of Trump’s calls for rate cuts, was confirmed by the Senate banking committee, but as a single vote on the Fed board, he cannot unilaterally change the interest rate policy.
• The Fed continues to balance its mandate to control inflation and support employment while resisting political pressure, with inflation still above target and unemployment stable, amid broader economic challenges influenced by White House policies and global events.