Powell Won’t Step Down! Continues as a Director After Resigning as Chair, Trump Mocks Him in a Post

Local time on April 29, Federal Reserve Chair Jerome Powell announced after the policy meeting that he will continue to remain in his role as a director after stepping down as chair. The decision breaks with the decades-old convention that successive chairs leave at the same time when handing over power.

Powell said this arrangement is unrelated to the verbal criticism from government officials. Instead, it is because the Justice Department’s criminal investigation into the Federal Reserve building renovation project has not yet been fully completed. He wants to make sure the related matters are handled “completely and transparently” before leaving.

However, Powell’s remarks were met with immediate and strong opposition from the Trump administration. Treasury Secretary Scott Bessent publicly accused Powell of “violating all Federal Reserve practices.”

Trump posted on social media mocking Powell, saying that “he can’t find any job elsewhere, and nobody wants him.” Previously, Trump had repeatedly threatened to fire Powell if he still did not step down after the end of his chair term.

The root of this political standoff lies in complex legal and nomination procedures. In January, the U.S. Department of Justice launched a criminal investigation into Powell regarding issues related to the Federal Reserve headquarters building renovation. In March, the U.S. District Court for the District of Columbia rejected these subpoenas.

By April 24, however, the Justice Department announced it was pausing the criminal investigation into Powell. Many observers widely believed this was intended to clear the way for Kevin Walsh, the next Federal Reserve chair nominated by Trump, to take over.

However, Republican Sen. Tom Tillis has publicly said that he will continue to obstruct the Senate’s approval of Walsh’s nomination until the investigation into Powell is fully resolved.

Tillis is a member of the Senate Banking Committee and has a key vote on Walsh’s nomination. This political stalemate means Powell could continue serving as acting chair after his term ends, until the nomination for the new chair is confirmed.

While announcing that he would continue to remain as a director, Powell also said he would carry out his duties in a “low-key” manner and would not interfere with Walsh’s leadership of the Federal Open Market Committee (FOMC).

Powell further emphasized that the Federal Reserve Board has only one chair. Once Kevin Walsh is confirmed and sworn in, he will become the new Federal Reserve chair.

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