Trump blasts Powell for staying on as Fed governor amid independence row
Synopsis
Jerome Powell is not leaving quietly. After announcing he will step down as Fed chair on 15 May but remain as governor, Powell warned that the central bank's 113-year-old independence is 'at risk' from unprecedented legal challenges by the Trump administration — prompting Trump to fire back on Truth Social with a personal attack. The standoff has real consequences for global monetary credibility.
Key Takeaways
Jerome Powell confirmed he will step down as Fed chair on 15 May but remain on the Federal Reserve Board as a governor.
Donald Trump attacked Powell on Truth Social , writing Powell "can't get a job anywhere else." Powell warned the Fed's independence is "at risk" , citing "unprecedented" legal actions by the administration in the central bank's 113-year history .
Powell said the Fed has already had to "go to court" to defend its authority, with more legal threats pending.
Powell stated he had "long planned to retire" but felt compelled to stay given ongoing institutional pressures.
US President Donald Trump launched a sharp attack on Federal Reserve Chairman Jerome Powell on Wednesday after Powell confirmed he would step down as chair on 15 May but remain on the Federal Reserve Board as a governor. The clash marks a significant escalation in the ongoing tension between the Trump administration and the central bank over its independence.
Trump's Broadside on Truth Social
Trump took to his Truth Social account to mock Powell's decision to stay on at the Fed.
Point of View
Framed explicitly as a defensive act against legal pressure, is extraordinary: a sitting Fed chief publicly declaring the institution is being 'battered' by its own government. What mainstream coverage underplays is the downstream risk — if markets begin to price in political interference in Fed decisions, the cost of borrowing for the US government itself rises. Trump's Truth Social salvo may play well domestically, but it sends a troubling signal to foreign holders of US debt about who, ultimately, sets American monetary policy.
NationPress
1 May 2026
Frequently Asked Questions
Why is Jerome Powell staying on at the Federal Reserve?
Powell confirmed he will step down as Fed chair on 15 May but remain on the Federal Reserve Board as a governor. He stated that recent legal actions by the Trump administration against the Fed's independence left him 'no choice but to stay until I see them through.'
What did Trump say about Jerome Powell?
Trump posted on Truth Social on Wednesday that Powell 'wants to stay at the Fed because he can't get a job anywhere else' and that 'nobody wants him.' The post was a direct response to Powell's announcement that he would remain as a Fed governor after stepping down as chair.
What legal challenges is the Federal Reserve facing?
Powell said the Trump administration has taken legal actions against the Fed that are 'unprecedented in our 113-year history,' forcing the central bank to go to court to defend its authority. He warned of 'ongoing threats of additional such actions.'
Why does Federal Reserve independence matter?
Central bank independence allows monetary policymakers to set interest rates based on economic data rather than political considerations. Powell argued that political influence over rate decisions would cause markets to 'lose faith' in the Fed, eroding its credibility and economic stability.
When does Powell officially step down as Fed chair?
Powell is set to step down as Federal Reserve chair on 15 May, but he plans to remain on the Federal Reserve Board as a governor for a period beyond that date.
