Powell to Step Down as Fed Chair May 2026

Jerome Powell will step down as chair of the Federal Reserve Board of Governors on May 15, 2026, concluding a tenure that began in 2018, but he plans to remain on the board until his term expires in 2028.

The announcement comes amid internal divisions at the Fed and ongoing scrutiny from the Trump administration. Powell's final Federal Open Market Committee meeting resulted in an 8-4 vote to maintain the federal funds rate in a range of 3.50 percent to 3.75 percent, marking the highest number of dissents since 1992. Three dissenters opposed elements of the policy statement interpreted as signaling potential future rate cuts, while Fed Governor Stephen Miran advocated for an immediate quarter-point reduction.

Kevin Warsh, a former Fed governor and economic adviser to President George W. Bush, is positioned to succeed Powell, with prediction markets showing strong confidence in his confirmation by mid-May 2026. Senate confirmation remains a key focus, with observers watching statements from senators such as Thom Tillis and Tim Scott. Scott, chair of the Senate Banking Committee, criticized Powell's decision to stay on the board, noting it breaks 75 years of precedent where...