By Evaristo Lara
Once his term as head of the Federal Reserve (Fed) expires on May 15, Jerome Powell plans to remain at the central bank, but occupying the position of governor.
The 73-year-old lawyer expressed at a press conference his desire to remain at the Fed for a period of time yet to be determined.
“I have said that I will not leave the board until this investigation has been concluded transparently and definitively, and I stand by my position. “I am encouraged by recent events and am closely monitoring the remaining steps in this process,” he said regarding the Justice Department’s criminal investigation into his handling of Federal Reserve renewals.
It should be noted that even though the Washington lawyer’s term as Fed chairman ends next month, His term as a member of the Fed board extends until January 2028.
“My decisions on these matters will continue to be guided entirely by what I believe is in the best interest of the institution and the people we serve,” Powell added.
The Federal Reserve board is made up of seven members, called governors, three of whom are appointed by the president and confirmed by the Senate as president, vice president, and vice president for oversight.
In the case of Jerome Powell, Since last year, his reluctance to lower interest rates as demanded by President Donald Trump generated a rift between both characters.
In fact, the Republican expressed on more than one occasion his desire to remove him as head of the Fed. However, the law prevented him from doing so and he had no alternative but to wait for his term to end.
The good news for Trump is that this Wednesday, A Senate committee endorsed the proposal that Kevin Warsh be the one to replace Jerome Powell in office.
Through a vote, the 13 Republican senators approved the nomination, while the 11 Democrats opposed it.
Warsh is a former senior Fed official who has been characterized as a harsh critic of the institution and Powell’s leadership, defining the rise in inflation in 2022 as an error attributed to the central bank.
Keep reading:
• Trump calls the chairman of the Federal Reserve a “cretin” and says that “that inept guy will be gone soon”
• JP Morgan defends FED independence while Trump wants to replace Jerome Powell
• Trump calls on Federal Reserve chair to resign immediately
