Federal Reserve Chair Jerome Powell has announced he intends to stay on the central bank's board after his term as chair expires next month, citing what he described as 'unprecedented' legal attacks by the Trump administration against the institution.
Powell made the announcement at a press conference following the Fed's decision to hold its benchmark interest rate steady. He did not specify how long he plans to remain on the board, saying only that it would be 'for an undetermined period of time.'
The decision to stay appears to be a direct response to mounting pressure from the Trump administration. Powell warned that political assaults on the Fed risk undermining its core functions.
'I worry these attacks are battering this institution and putting at risk the things that really matter to the public,' Powell said.
The remarks mark a notable moment of public confrontation between the nation's top monetary official and the White House. The Trump administration has repeatedly criticized Powell and the Fed, with President Trump pushing for lower interest rates and at times suggesting he could seek to remove Powell from his post.
The Federal Reserve operates as an independent institution, a structure designed to insulate monetary policy decisions from short-term political pressures. Legal challenges or executive actions that could undermine that independence have raised concerns among economists and market observers.
By choosing to remain on the board after stepping down as chair, Powell signals an intention to preserve continuity and institutional stability during a period of political friction. Board governors serve 14-year terms, which are staggered to limit any single administration's influence over the central bank's leadership.
The Fed's decision to keep interest rates unchanged reflects ongoing caution about the economic outlook, including uncertainty stemming from trade policy. Powell and other Fed officials have said they are in no rush to cut rates until there is greater clarity on inflation and employment trends.
Powell's comments, as reported by the South China Morning Post, come as the central bank navigates one of its more politically charged periods in recent memory, with its decisions closely watched by global markets and governments alike.
