Outgoing Federal Reserve Chair Jerome Powell said Wednesday he will remain on the Fed's Board of Governors after stepping down from the top spot next month, an unprecedented move in modern times that comes amid legal scrutiny and tension with President Donald Trump.
"I plan to keep a low profile as a governor," Powell told reporters. "There's only ever one chair. When Kevin Warsh is confirmed and sworn in, he will be that chair."
Powell said his decision to stay on the board after his term as chair ends May 15 will be guided by institutional concerns.
"My decisions on these matters will continue to be guided entirely by what I believe is in the best interest of the institution and the people we serve," he said, adding he will remain "for a period of time to be determined" and "will leave when I think it's appropriate."
The move would make Powell the first Fed chair since 1948 to remain as a governor after stepping down.
A central factor, Powell indicated, is what he described as legal pressure on the Fed.
"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," he said.
Powell was referring to a Justice Department probe into his conduct that has been dropped but could be reopened.
"I've said that I will not leave the board until this investigation is well and truly over with transparency and finality, and I stand by that," he said.
He drew a sharp distinction between political criticism and legal action.
"This has nothing whatever to do with verbal criticism by elected officials," Powell said.
"I've never suggested that such verbal criticism is a problem." But, he added, "these legal actions by the administration are unprecedented in our 113-year history," warning of "ongoing threats of additional such actions.
"I worry that these attacks are battering the institution and putting at risk the ability to conduct monetary policy without taking into consideration political factors."
Powell's remarks come after years of friction with Trump, who nominated him as Fed chair during his first term in 2017, but has since criticized him over interest rate policy.
The president has pushed for deeper rate cuts, arguing the Fed was hindering economic growth and the administration's economic record heading into the 2026 midterms.
More recently, tension has extended to scrutiny from Trump over cost overruns tied to a Federal Reserve building renovation project.
Warsh is widely seen as more aligned with Trump's economic views.
James Morley III ✉
James Morley III is a writer with more than two decades of experience in entertainment, travel, technology, and science and nature.
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