Romain Faquet retweetledi
𝗝𝗮𝘆 𝗣𝗼𝘄𝗲𝗹𝗹 𝘄𝗶𝗹𝗹 𝗿𝗲𝗺𝗮𝗶𝗻 𝘄𝗶𝘁𝗵 𝘁𝗵𝗲 𝗙𝗲𝗱 𝗮𝗳𝘁𝗲𝗿 𝘁𝗵𝗲 𝗲𝗻𝗱 𝗼𝗳 𝗵𝗶𝘀 𝘁𝗲𝗿𝗺 𝗮𝘀 𝗽𝗿𝗲𝘀𝗶𝗱𝗲𝗻𝘁.
Jay Powell decided to remain a member of the Federal Reserve board after the end of his term as president in May 2026. He can remain governor until January 31, 2028.
In the press conference following the monetary policy committee, he indicated that once Kevin Warsh has been sworn in, he alone will lead the American central bank. It is then up to him to convince about the relevance of the strategy he will lead. He, Jay Powell, will become a simple governor again and wants to be neutral but ready to discuss with Warsh like any board member.
By acting in this way, he avoids the role of shadow governor, the one who deciphers and criticizes decisions and who discredits the choices made. From this point of view, his attitude is rather honest by not wanting to draw the lights on him to the detriment of the new president. This is consistent with the attitude he had during his presidency.
If Powell stays then he will deprive Trump of the appointment of a new member who would be favorable to him. The FOMC board, with Powell as governor, would not have a pro-Trump majority. For now there is Michelle Bowman, Christopher Walker. There will be Kevin Warsh, of course, who will replace Stephan Miran who is a temporary member. This will not make a majority.
On the other hand, Donald Trump will get carried away. He has already threatened Powell to fire him if he stayed.
During an interview with Fox Business on April 15, 2026, he said: "Well, then I will have to fire him. If he doesn't leave on time...". This point will be interesting since he has already tried to "fire" Lisa Cook without success.
It will therefore be a new test of the independence of the American central bank. This will be important for the credibility of the institution and the status of U.S. assets for international investors.
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