By staying on the Fed’s board, Jerome Powell could be doing incoming Chairman Kevin Warsh a huge favor
Jerome Powell announced he will remain on the Federal Reserve Board beyond his term as chairman, citing concerns over political attacks on the institution and the ongoing scrutiny of the Fed's headquarters renovation. His continued presence could shield incoming Chair Kevin Warsh from political pressure, particularly from Donald Trump, who has criticized Powell's decision. Powell's move breaks with tradition, last seen in 1948, and creates space for Warsh by requiring Governor Stephen Miran to step down.
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Jerome Powell’s continued presence on the Federal Reserve’s board of governors after his term as chairman ends might be awkward for his replacement, but could also be a big favor for Kevin Warsh.Recommended Video On Wednesday, Powell diverged from long-standing tradition and announced he will remain on the board until the investigation into renovation of the Fed’s headquarters is truly complete. That came after the Justice Department dropped its investigation but left the door open to a renewed probe. “My concern is really about the series of legal attacks on the Fed, which threaten our ability to conduct monetary policy without considering political factors,” Powell told reporters.
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