Will Powell stay or will he go?
U.S. Federal Reserve Chair Jerome Powell speaks as he holds a press conference following a two-day meeting of the Federal Open Market Committee (FOMC), at the U.S. Federal Reserve in Washington, D.C., U.S., Dec. 10, 2025.
Kevin Lamarque | Reuters
One lingering question is whether Jerome Powell will step down when his term as Fed chair ends. This has typically been the custom, but Powell could be motivated to remain as a governor to ensure that the central bank’s independence remains on solid ground.
Powell’s term as governor doesn’t expire until January 2028, and he could leave at any time before then.
U.S. attorney Jeanine Pirro recently abandoned a criminal investigation of Powell in order to clear the way for confirmation of Kevin Warsh, President Donald Trump’s nominee. Instead, Pirro said her office asked the Fed’s inspector general to investigate cost overruns in the multibillion-dollar renovation of the central bank’s headquarters in Washington.
Trump has been vocal like none of his predecessors when it comes to badgering the central bank, demanding lower interest rates while threatening to fire Powell and actively trying to remove Governor Lisa Cook.
If Powell leaves now, he will give Trump an opening to appoint another member to the Board of Governors. Counting Warsh, the president would have three appointees on the seven-member board, including Governors Christopher Waller and Michelle Bowman from his first term.
—Christina Cheddar Berk, Jeff Cox
What to expect from the Fed’s interest rate decision due Wednesday
Central bank policymakers are widely expected to keep their key interest rate on hold at their target range of 3.5% to 3.75% at the conclusion of their April meeting. Markets are pricing in a 100% chance the Federal Open Market Committee will stay on hold, according to the CME FedWatch tool.
Since it will likely be Fed Chair Powell final meeting, some suspect the news conference slated for 2:30 p.m. won’t be considered to be the strong signal about future policy as it usually is.
—Christina Cheddar Berk
