Jerome Powell announced that he will step down as chair of the Federal Reserve but will remain as a governor of the institution, a decision that generated frustration for Donald Trump and reignited debate over the central bank’s independence. Powell’s term as chair ends on May 15, although his role as governor runs through 2028.
The move breaks with a historical tradition, as outgoing chairs usually make room for their successors. Powell explained that he wants to protect institutional stability amid political pressure and recent legal disputes.
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Meanwhile, Kevin Warsh is expected to assume the chairmanship soon, at a time marked by persistent inflation and global tensions.
Why does this decision upset Trump so much?
Because it prevents an immediate new vacancy at the Fed and limits his influence over the institution.
Now the big question arises: will Powell remain a key figure even without holding the chairmanship?
