Jerome Powell announces his withdrawal from the position of chairman of the Fed, but will remain on the Board of Governors

Jerome Powell, the governor of the Federal Reserve (Fed), stated on Wednesday that he will remain in his position as governor until the end of his term on May 15, despite political and judicial pressures.

Although he can remain on the Board of Governors until January 2028, his decision not to make way for successor Kevin Warsh was criticized by Treasury Secretary Scott Bessent, who deemed it an insult. President Donald Trump mocked Powell's decision, suggesting that he remains at the Fed out of lack of options. Powell explained that he feels threatened by legal proceedings and emphasized the importance of the Fed remaining focused on economic goals, not political influences. In a Senate committee, Warsh's appointment was approved, but the Fed remains divided, with no intention of lowering interest rates in the near future, in the context of rising inflation and pressures.