Jerome Powell Vows to Stay at Federal Reserve — 'I Have No Choice,' He Says - Blockonomi
by Trader Edge · BlockonomiTLDR
Table of Contents
- Federal Reserve Chair Jerome Powell has committed to remaining on the board as a governor beyond his May 15 chair term expiration
- Powell referenced political and legal pressures as compelling factors, stating he was left with “no choice”
- Interest rates remained unchanged at 3.5%–3.75%, marked by four dissenting votes — an uncommon occurrence in recent Fed history
- Kevin Warsh, nominated by Trump for Fed chair, passed the Senate Banking Committee vote 13-11 on April 29
- Bitcoin dropped under $75,000 after the Fed’s hawkish messaging from dissenting board members
Jerome Powell revealed on Wednesday his intention to continue serving on the Federal Reserve board in a governor capacity once his chairmanship concludes in May, walking back previous retirement expectations.
During what Powell described as his final press briefing as chair, he explained that developments over the preceding three months compelled him to remain. “The things that have happened really in the last three months have, I think, left me no choice but to stay until I see them through,” Powell remarked.
Powell directly cited mounting legal challenges and political interference as primary motivations for his decision to continue serving. He expressed concern that these external pressures jeopardize the central bank’s independence in establishing monetary policy free from political influence.
The Trump White House had previously initiated a criminal probe targeting Powell, which was later paused. Nonetheless, administration officials indicated willingness to revive the investigation should additional evidence surface, creating ongoing uncertainty regarding Powell’s status.
U.S. Attorney Jeanine Pirro confirmed the issue would continue under scrutiny by the Federal Reserve’s inspector general. Trump has personally issued warnings that Powell should resign by May or face potential termination.
Powell made clear his commitment to remain until full resolution occurs. “I’ve said that I will not leave the board until this investigation is well and truly over with transparency and finality,” he declared.
Fed Maintains Current Rates Amid Unusual Division
During Wednesday’s meeting, the Federal Reserve maintained interest rates at the current 3.5%–3.75% range. The decision featured four dissenting votes from governors, representing a rare level of internal disagreement not witnessed in recent decades among Fed policymakers.
The governors who dissented objected to any forward guidance suggesting potential rate reductions, injecting a more hawkish stance into the overall policy message.
Matt Mena, macro analyst at 21Shares, characterized the dissenters as having “threw a bucket of ice on the market’s pivot party.” He observed that the hawkish messaging created headwinds for risk-oriented assets.
Bitcoin Drops Following Fed Announcement
Bitcoin experienced a decline beneath the $75,000 threshold after the Federal Reserve’s policy statement. Market participants are now monitoring the $73,000 level as a possible support test.
Mena suggested that markets could begin factoring in rate reduction expectations once Kevin Warsh, the incoming Fed chair nominee, assumes leadership. He projected that renewed positive momentum could drive Bitcoin toward the $85,000–$90,000 range.
Regarding inflation metrics, Powell indicated PCE inflation projections of 3.5% for March, with core PCE estimated at 3.2%. He observed that near-term inflation expectations have climbed, while long-range objectives continue targeting 2%.
The Senate Banking Committee approved Kevin Warsh’s nomination through a 13-11 vote on April 29. Powell referenced the committee action during his media briefing, offering congratulations to Warsh for advancing through the confirmation process.