Powell Refuses to Leave the Fed — Here’s Why He Says He Has “No Choice”

TLDR

• Jerome Powell says he will remain on the Federal Reserve board as a governor after his chair term ends May 15
• Powell cited legal threats and political pressure as reasons for staying, saying he had “no choice”
• The Fed held interest rates steady at 3.5%–3.75%, with four officials dissenting — rare in recent decades
• Trump’s Fed nominee Kevin Warsh cleared the Senate Banking Committee with a 13-11 vote on April 29
• Bitcoin slipped below $75,000 following the Fed’s hawkish tone from dissenting governors

Jerome Powell announced Wednesday he will stay on the Federal Reserve board as a governor after his term as chair ends in May, reversing his earlier plans to retire.

Powell specifically pointed to legal and political pressure on the Fed as his reason for staying. He said these pressures are threatening the Fed’s ability to set monetary policy without political interference.

The Trump administration previously opened a criminal investigation into Powell, then suspended it. However, officials left the door open to reopening the case if new facts emerged, adding to uncertainty around Powell’s position.

U.S. Attorney Jeanine Pirro said the matter would remain under review by the Fed’s inspector general. Trump himself has also threatened to fire Powell if he does not resign by May.

Fed Holds Rates, Dissenters Stand Out

On Wednesday, the Federal Reserve kept interest rates unchanged at 3.5%–3.75%. Four governors dissented on the decision, which analysts described as unusual — the first time in decades policymakers have been this divided.

The dissenting governors pushed back against any guidance pointing toward rate cuts, adding a hawkish tone to the meeting’s outcome.

Bitcoin Reacts to Fed Decision

Bitcoin fell below $75,000 following the Fed’s announcement. Traders are now watching the $73,000 level as a potential retest target.

Mena added that markets may start pricing in a rate-cut pivot under incoming Fed chair nominee Kevin Warsh. He said if momentum returns, a move toward $85,000–$90,000 is possible.

On inflation, Powell said PCE inflation is projected at 3.5% for March, with core PCE at 3.2%. He noted short-term inflation expectations have risen, though long-term targets remain at 2%.

The Senate Banking Committee advanced Kevin Warsh’s nomination with a 13-11 vote on April 29. Powell acknowledged the vote during his press conference, congratulating Warsh on moving forward in the process.

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