Federal Reserve Chair Jerome Powell announced he will stay on the Fed Board of Governors after his term as Chair ends on May 15, 2026, citing an ongoing Department of Justice (DOJ) investigation as the reason he cannot retire.

The decision keeps Powell in his governor seat through January 2028 and prevents President Donald Trump from filling a fourth Board of Governors slot, a move that would have given the administration tighter influence over monetary policy votes.

Powell delivered the announcement at what he confirmed was his final press conference as Fed Chair. He told reporters he had planned to retire when his current term ended, but legal pressure from the Trump administration had altered that calculation.

Powell said he would wait until the active Department of Justice investigation reached its conclusion before stepping away from the Board.

He also rejected the idea that he would operate as a “shadow chair” from his governor seat.

“I would never do the ‘shadow chair thing’. I propose to be constructive participant on board,” he stated.

Powell also congratulated Kevin Warsh, the Trump nominee expected to take over as Chair on May 15.

Three of the seven seats on the Board already belong to Trump appointees from his prior term. A vacated Powell seat would have opened the door for a fourth ally, giving the administration a working majority on FOMC votes.

Powell’s decision to stay through January 2028 closes that opening. Trump can still install Warsh, but the broader vote balance on the Federal Open Market Committee (FOMC) remains intact for now.

BIG NEWS: Fed Chair Powell will stay on as a governor after his chair term ends on May 15.

"I will continue to serve as a governor for a period for time to be determined. I plan to keep a low profile as a governor," Chair Powell says.

He says there are "ongoing legal threats"… pic.twitter.com/siuOFxwHy0

Notably, Powell is the only current governor appointed by presidents of both parties. At first, former US President Barack Obama appounted him, then as chair by Trump, and later reappointed by Joe Biden.

Trump already appointed Michelle Bowman and Christopher Waller, and is expected to fill another seat with Kevin Warsh, potentially tipping control of the board.

Some see the move as resistance rather than confrontation, while others described the decision as a quiet power move that limits how quickly the administration can reshape rate-cut policy.

The Senate Banking Committee cleared Warsh in a 13-11 vote earlier today, putting him in line for a full Senate confirmation ahead of the May 15 transition.

Kevin Warsh has the vision to execute fundamental reforms at the Federal Reserve that are long overdue. I urge my colleagues to confirm him so the Fed can finally become a partner in sound digital asset policy & put an end to the weaponization of banking regulators once & for all pic.twitter.com/cIgw7Y31kZ

Trump nominated Warsh on a platform of lower interest rates, a stance that has drawn enthusiastic responses from crypto markets in recent weeks.

Powell himself acknowledged Wednesday that internal projections had shifted, with the number of FOMC participants seeing a rate hike now roughly equal to those expecting a cut.

That divergence could complicate the runway for the aggressive easing Trump has pushed for.

“I’ll take him at his word,” Powell responded when asked if he was confident that Kevin Warsh would stand up to political pressure from President Trump.

Whether Powell’s continued presence slows that path to rate cuts moving forward will depend on how the remaining Board seats vote on each meeting agenda.

The first FOMC under Warsh’s leadership will offer the earliest test of whether the new Chair can build consensus for the cuts the administration wants.

The post Powell to Stay on Fed Board as Governor, Blocking Trump’s Path to Majority appeared first on BeInCrypto.

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