Powell to Remain on Federal Reserve Board After Chair Term; Rates Unchanged

Federal Reserve Chair Jerome Powell announced on April 29, 2026, that he plans to remain on the Federal Reserve Board as a governor after his term as chair ends on May 15, 2026. " The announcement means there will be no immediate vacancy for President Donald Trump to fill on the seven-member board.

The Federal Open Market Committee voted 8-4 on April 29, 2026, to hold interest rates steady, marking the third consecutive meeting without changes. This was the highest number of dissents since October 1992. Governor Stephen Miran dissented in favor of a rate cut.

Governors Beth M. Hammack, Neel Kashkari, and Lorie K. Logan dissented by voting to hold rates but opposing the inclusion of language in the statement that signaled a potential future easing.

Powell addressed the central bank's independence during the press conference, stating that it is "at risk" and emphasizing its importance for credibility. The decision to hold rates comes amid economic factors including rising energy prices, supply shocks, an uncertain labor market, and potential shifts in tariff rates.

The committee has recorded dissents at every meeting since September 2025, reflecting differing views on these issues.

" The Justice Department had announced on April 28, 2026, that it was dropping an investigation into renovation cost overruns at the Fed's headquarters during Powell's term. Powell said the department provided assurances it would not reopen the probe without a criminal referral from the Fed's inspector general.

Incoming Fed Chair Kevin Warsh, whose nomination was advanced by the Senate Banking Committee, is set to take over a committee that some reports describe as more hawkish than preferred by the White House. The Fed's policy affects areas such as car and home loans, credit cards, and savings accounts.