Yesterday evening, Jerome Powell gave his last press conference as Federal Reserve Chairman before his mandate ends on May 15th. Powell congratulated Kevin Maxwell Warsh who will be replacing him, but said that he will not resign from the board until an investigation against him is concluded. The investigation was initiated by President Trump’s Department of Justice over the renovation of the Federal Reserve building.
Powell said that the press is essential to articulate and explain the positions of the Fed and the relevant economic context. He said that he was honoured to serve in his role with a deep commitment to the American people.
Interest rates have been left unchanged at 3.5%. The Federal Reserve said that the conflict in the Near East provides a high level of uncertainty and the Fed’s goal is to maintain the inflation rate at 2% along with maximum employment. You can view the decision here. His full speech can be viewed here. Press conference can be viewed here.
Jerome Powell was appointed as Federal Reserve board member by President George W. Bush in May 2012, but was eventually appointed as Fed Chair by President Donald Trump in 2018. President Trump fell-out with Powell during his current administration as he accused him of keeping interest rates too high. Chairman Powell refused to lower interest rates against political pressure and vowed to defend the institution’s independence. President Trump retaliated by prompting an investigation against him over the Fed’s building renovations.
Jerome Powell guided the monetary policy during the very unusual Covid crisis which shut down most of the global economy. His position remained challenging even after the Covid crisis ended as Russia invaded Ukraine and a global energy crisis ensued. His policy was guided by very decisive actions at times of crises, and a steadfast resolve to support employment and keep inflation down by adapting to data in a Platonic and neutral manner. His track-record shows that he applied versatility and acted in accordance with circumstances, lowering interest rates to zero territory during the Covid crisis, and then raising them again to combat inflation as energy shocks ensued.
Powell remained very accessible to journalists, trying to answer as many varied questions as possible from as many different journalists. He always projected competence, integrity and independence. He last words as he left the press conference room were “I won’t see you next time”.
Newsroom
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