Jerome H. Powell announced at a Washington press conference that he will remain on the Federal Reserve Board after stepping down as chair on May 15. He cited ongoing legal challenges to the central bank and warned that its independence could be jeopardised. Powell said he would keep a low‑profile role as a governor for the duration of the current term.

The Fed held rates steady, but the meeting revealed growing rifts over future guidance. A minority of members pushed for a clearer warning that the next move might be a hike, citing inflation risks from the Iran war. Powell dismissed the idea that the new chair would inherit a fractured institution, praising Kevin Warsh’s consensus‑building skills for a smooth transition.

Powell’s decision to stay signals a desire to shield the Fed from political pressure and maintain policy continuity amid market volatility. Investors will watch his future moves closely, as his presence on the Board may influence rate expectations and confidence in the central bank’s impartiality. The announcement confirms that the Fed’s leadership will remain stable through the next election cycle.