Powell to Remain on Fed Board After Stepping Down as Chair, Emphasizing Commitment to Independence

"Concerns Over Legal Attacks on the Fed"

"To Remain on the Board for a Certain Period"

Jerome Powell, Chair of the U.S. Federal Reserve (Fed), has decided to remain as a Board member for a while after the end of his term as Chair. This move is interpreted as an effort to maintain continuity in monetary policy and to uphold the independence of the Fed even after the change in leadership.

On April 29 (local time), during a Federal Open Market Committee (FOMC) press conference, Powell stated, "After my term as Chair ends on May 15, I plan to continue serving as a Board member for a certain period," adding, "As a Board member, I intend to keep a low profile."

Jerome Powell, Chair of the Federal Reserve. Photo by Yonhap News

Powell also said, "I welcome the announcement by the Chief of the Washington D.C. Metropolitan Police Department that the investigation has been closed." However, he pointed out, "He also mentioned that he would not hesitate to reopen the investigation."

He added, "I have said that I will not leave the Board until this investigation is transparently and definitively concluded, and I maintain that position," and "I am closely monitoring the remaining steps."

It is customary for the Fed Chair to step down from the Board after retirement. Concerns over the independence of the Fed have surfaced following pressure from U.S. President Donald Trump to lower interest rates and an investigation by the U.S. federal prosecutors. In response, Powell appears to be maintaining his Board membership.

Previously, the U.S. Department of Justice launched an investigation into Powell regarding allegations of excessive spending related to renovations at the Fed headquarters. Both inside and outside the Fed, criticism arose that this investigation was intended to pressure Powell to resign in response to President Donald Trump's demands for interest rate cuts. Even within the Republican Party, there was opposition, with some arguing that it threatened the independence of the Fed and refusing to confirm Kevin Warsh, the nominee for the next Fed Chair.

Ultimately, last weekend, the Department of Justice announced that it would not reopen the investigation unless the Fed's Inspector General makes a criminal referral. The Washington D.C. federal prosecutors also declared the investigation closed. Following this, the Senate Banking Committee approved Warsh's nomination, and he is expected to take office as Powell steps down.

When asked why he chose to remain on the Board, Powell said, "What concerns me is the series of legal offensives against the Fed that threaten our ability to conduct monetary policy free from political considerations."

He stated, "Let me be clear, this is entirely unrelated to any critical remarks from elected officials," but added, "However, the legal actions taken by the administration are unprecedented in our 113-year history, and there are ongoing threats that such actions may continue in the future."

"I am concerned that these attacks undermine the central bank as an institution and jeopardize our ability to conduct monetary policy free from political factors, which is truly important to the public," he emphasized, "It is crucial that our economy and the people we serve can trust that the central bank operates in a manner free from political influence."

This content was produced with the assistance of AI translation services.