Jerome Powell Steps Down as Fed Chair While Staying on Federal Reserve Board

Jerome Powell officially ended his term as Chair of the Federal Reserve on Friday after serving 3,018 days in the role. However, Powell will remain at the central bank as a board member, with his separate 14-year term continuing until January 2028.

Powell said he had originally planned to retire but decided to stay following growing political pressure on the Federal Reserve. He expressed concern about protecting the institution’s independence during ongoing disputes with the Trump administration.

Kevin Warsh Begins New Era as Fed Chair

Kevin Warsh has now been confirmed as the new Federal Reserve chair, taking office at a difficult time for monetary policy. President Donald Trump has repeatedly pushed for lower interest rates as inflation concerns tied to global tensions continue to shape economic policy.

Powell said he does not plan to act as a “shadow chair” and will maintain a low public profile while remaining on the Fed board.

Political Pressure and Fed Independence Stay in Focus

Powell’s decision to remain follows criticism from some Republican lawmakers and an earlier Justice Department investigation related to Federal Reserve headquarters renovations. He said he plans to leave once ongoing concerns surrounding the institution are fully resolved.