Powell will remain on the Fed board after his chair term ends

Jerome Powell will remain on the Federal Reserve’s Board of Governors after his term as chair ends on May 15, preserving a seat that runs through January 2028.

Reuters reported Tuesday that Powell said he will stay on as a governor and keep a low profile rather than act as a “shadow chair.” AP reported that Powell framed the decision as a response to legal attacks and broader concerns about the Federal Reserve’s independence.

The choice blocks an immediate vacancy that President Donald Trump could have tried to fill, narrowing the White House’s options in the fight over the direction of the central bank.

The Federal Reserve’s own materials show Powell chaired the April 28-29 policy meeting, where the Fed held rates steady. The central bank’s public meeting page also confirms the timing of the press conference that followed.

The development gives Powell a longer runway at the Fed even after he steps down as chair. What happens next will depend on how long he stays on the board and how the Trump administration responds to the vacancy issue.