Jerome Powell Steps Down as Fed Chair, Hands Role to Kevin Warsh

Jerome Powell steps down as chair of the Federal Reserve on Friday after more than eight years in the role. Powell guided the central bank through the COVID-19 pandemic, a brief but steep recession, and the highest inflation in four decades. Economists interviewed by CBS News credited his measured approach for helping stabilize the economy during those shocks.

5 percent. The later tightening produced what analysts called a soft landing, with inflation easing while unemployment fell to a 50-year low. The New York Times reported that Powell will pass the chair to Kevin Warsh, President Trump's nominee, who has said the institution needs an overhaul. Powell will stay on the board as one of 12 voting members of the Federal Open Market Committee.

" The administration launched a criminal investigation into Federal Reserve building renovations in January before dropping the probe. Powell said in an April 29 press conference that the institution remains "at risk" from legal challenges. He cited those risks as the reason for remaining a governor rather than leaving the Fed entirely.

8 percent for April, the highest reading since May 2023. Economists said Powell's record on inflation is mixed because prices have remained above the Fed's 2 percent target for more than five years. Powell will continue to serve as a voting member of the FOMC in his new capacity as governor.