As we reported, Jerome Powell delivered his final speech as Federal Reserve Chairman before his term ends on May 15. Meanwhile, Trump’s pick to replace Powell, Kevin Warsh, was approved by the Senate Banking Committee by a vote of 13-11, and the nomination now heads to the full Senate, where he is expected to be confirmed.
But in an expected twist, Powell also announced on Wednesday that he will stay on the Fed’s Board of Governors even after his term is over.
It’s a clear departure from the way things are usually done:
While Powell’s term as governor allows him to remain at the Fed until early 2028, it represents an unusual arrangement because for decades, Fed chairs have left the building when their successor is installed.
Treasury Secretary Scott Bessent agrees, and he appeared on the Fox Business Channel to note the hypocrisy coming from a guy who often goes on and on about “tradition.”
I love the way his eyebrow is arched in the first frame of the video in his tweet:
It is unusual for soon-to-be-former Fed Chair Jay Powell to stay on at the @federalreserve. For someone who speaks so often of norms, his unilateral decision to stay flies in the face of tradition.
Kevin Warsh will bring about a new day at the Fed, with accountability, management, and sound policymaking in the lead.
Host Larry Kudlow started things off by saying Powell was being “ungentlemanly” with his stunt, and asked, “Why did he have to do it?”
That’s all Bessent needed to hear before he unloaded on the soon-to-be ex-chairman:
I will say, it's highly unusual what soon to be former chair Powell, did, and Larry, to be clear, the last time that a Fed chair stayed on the board, it was at the request of the president. One thing, I can promise you, President Trump did not request for Jay Powell to stay.
Ha. That much is undoubtedly true because the president has been hugely frustrated and has dubbed Powell “Too Slow Jerome.”
The move appears hypocritical, Bessent argued:
I think it's highly unusual for someone who says he's an institutionalist and cares about norms at the Fed. This is a violation of all Federal Reserve norms.
We had the worst inflation, perhaps, in our country's history, certainly, in 47 or 50 years, under this chairman [true, but let's not forget former President Joe Biden's role in that debacle]. I think the good news is, today, Kevin Warsh, cleared committee and he’s going to be confirmed.
He will be the new Fed chair on time, May 15th... and I think it's going to be a new day at the Fed... And, you know, I think that we will have a great monetary policy. I think we will have a great management in terms of the regulatory and of the facilities.
James Fishback, an investor and Republican running for governor in the 2026 Florida race to succeed Ron DeSantis, summed up the feelings of many who have been frustrated by Powell:
Fox News asked me if I “ever feel sorry for Jerome Powell when Trump attacks him?”
Me: "No, I don’t feel sorry for Jerome Powell. He’s worth over $200 million. Who I feel sorry for are Americans who can’t get a mortgage because Powell refuses to lower interest rates. I feel sorry that they can’t start a family because they can’t buy a home. I feel sorry for the single mom who can’t get a credit card because Jerome Powell is trying to undermine the duly elected President of the United States."
I don’t know what Powell’s motives are for hanging around after the party is over, but it sure has all the appearances of him just wanting to annoy the hell out of the president and try to undermine Warsh.
Dessert has been served, the nightcaps have been imbibed, the lights have been dimmed — it’s time to go home, Jerome.