The Chairman of the American Federal Reserve Jerome Powell, whose mandate ends on May 15, announced Wednesday that he would remain governor within the institution. A decision which breaks with the custom of leaving the field open to his successor, and a setback for American President Donald Trump, who has continued to criticize him.

Published on: 04/29/2026 - 5:21 p.m. Modified on: 04/30/2026 - 04:23

Jerome Powell announced on Wednesday April 29 that he would remain at the American Federal Reserve (Fed) as governor at the end of his term as president, as long as he was subject to political-judicial pressure. He chairs the central bank of the world's largest economy until May 15 but can remain on the board of governors until the end of January 2028. "I will leave when I deem it appropriate," he declared at a press conference.

His decision, which breaks with the custom of leaving the field open to his successor, was very poorly received by the executive. “This is a violation of all Fed rules,” Finance Minister Scott Bessent said on Fox Business. He added that he saw it as an "insult" to Jerome Powell's designated successor, Kevin Warsh, and other central bankers appointed by President Trump. According to him, Jerome Powell acts as if “only he could preserve the integrity” of the institution.

Jerome Powell, 73, "only stays because he can't find work elsewhere (...), no one wants him", quipped Donald Trump on his Truth Social platform. His extended stay is a setback for the president, who has sought to hasten his departure and wants to give his governor's seat to someone else.

“Keep a low profile”

Jerome Powell explained that he intended to "keep a low profile", remaining only because he still considers himself threatened by legal proceedings.

Since his return to power, Donald Trump has not hesitated to destabilize the central bank because it does not provide the interest rate cuts he expects. Blaming Jerome Powell for the slippage in the bill for the renovation of the Fed headquarters in Washington, he supported the opening of a legal investigation against him. This has just been closed but does not seem to have been definitively buried. At the same time, he tried to oust Governor Lisa Cook. The Supreme Court is expected to rule on this case soon.

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“It is a widespread concern that this kind of thing could continue,” said Jerome Powell, who became president in 2018 at the initiative of Republican Donald Trump and renewed under Democrat Joe Biden.

Although he seemed generally relaxed during the press conference, he nevertheless took care to insist, with a serious air, on the importance of having a central bank focused solely on economic objectives and the general interest, not on the next electoral deadline.

He congratulated Kevin Warsh, the former governor of the Fed (2006-2011) whom Donald Trump nominated to succeed him. He said he takes Kevin Warsh “at his word” when he assures that he will not be influenced. A Senate committee gave the green light to this appointment in the morning with the sole votes of the presidential majority. A vote in plenary session will be organized later, to remove the last obstacle upon his arrival at the helm of the institution.

Rates remain unchanged

This unusual transition has somewhat eclipsed the monetary aspect. However, the conclusion of the two days of closed-door meetings shows that Kevin Warsh inherits a divided institution, reluctant to lower rates in the near future, and in the dark.

This was expected: the Fed has not touched its interest rates, at the same level (between 3.50% and 3.75%) since December. What was less obvious, and had not been seen for more than thirty years, was that four dissensions were recorded among the twelve members of the monetary policy committee.

Governor Stephen Miran – who will soon give up his seat to Kevin Warsh – voted for lower rates. Three other officials, who oversee regional Feds, are in favor of the status quo but disapprove of the wording of the final press release.

Beth Hammack (Cleveland), Neel Kashkari (Minneapolis) and Lorie Logan (Dallas) don't want the Fed to suggest it's inclined to lower rates in the future. They therefore point out that, according to them, it could on the contrary have to raise them in the face of inflation. Americans are currently experiencing sharp price increases, particularly at the pump, due to the war in the Middle East.

With AFP

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