Federal Reserve Chair Jerome Powell isn’t going anywhere—after stepping down as chair, he will continue to stay on the Board of Governors as an ordinary governor. This news was announced after the Federal Open Market Committee meeting on April 29. The moment the news broke, Washington erupted.

So why doesn’t Powell leave? Behind it are three-way games involving lawsuits, politics, and the market.

The most direct “protective charm” for Powell to remain is that legal investigation that hasn’t been fully resolved yet. The investigation traces back to cost overruns in the Federal Reserve headquarters renovation project: the budget rose from 1.9 billion dollars to about 2.5 billion dollars. It later morphed into a “weapon” in political struggles.

June 2025: Powell testifies before Congress, admitting the overspending.
January 2026: The Department of Justice issues a subpoena, threatening to bring criminal charges; Powell says this is retaliation for his failure to cooperate with cutting interest rates.
March 2026: The court dismisses the Department of Justice subpoena.
April 24, 2026: The investigation is handed over internally to the Federal Reserve, but prosecutors say, “If necessary, we will not hesitate to restart the criminal investigation.”

So Powell believes that as long as the matter has not reached a final conclusion that is “complete and transparent,” he cannot leave—otherwise it would amount to “fleeing in fear of guilt.”

Of course, a deeper consideration behind this move is that Powell is taking the initiative to limit Trump’s “penetration” into the Federal Reserve.

Powell understands that if he fully leaves, Trump can do more than nominate a new chair—he can also add another governor seat to place his own people.

That’s why Powell broke with historical convention. He became the first Federal Reserve governor since 1948 to not leave after stepping down as chair. It’s probably to prevent Trump from installing an overwhelming majority of loyalists at the Federal Reserve.

In addition, Powell’s decision to stay on is also tied to completing a political deal. Republican Senator Tillis has the key vote on the nomination of new chair Waller. Previously, he had taken a hard line, saying that as long as the investigation targeting Powell is not concluded, he would do everything to block Waller from taking office.

So as long as Powell hasn’t completely stepped out, the Department of Justice can’t fully close the investigation, giving Tillis a continued reason to stall. Tillis’s “stalling,” in turn, makes it harder for Trump’s people to secure the chair position in the short term.

All in all, how should I put it—Powell still gives the impression of having a lot of backbone. It has a sense of not being afraid of power and a sense of righteousness.

What’s funny now is Trump’s team. Treasury Secretary Besant publicly accuses Powell of “violating all the Federal Reserve’s traditional rules.” Trump himself has been even more blunt on social media, mocking Powell, saying, “If he goes elsewhere, he can’t find a job at all—nobody wants him.”$BTC #美联储利率不变但内部分歧加剧