Powell to Remain on Fed Board After Term as Chair Ends
Is this a stabilizing decision or a contradiction of norms?
Above: Jerome Powell at a news conference in Washington, D.C., U.S., on Apr. 29. Image credit: Daniel Heuer/Bloomberg/Getty Images
The Spin
Pro-establishment narrative
Powell's decision to stay on as governor is a prudent choice in light of recent events. Given the uncertainty caused by the DOJ's criminal investigation into the Fed, Powell must remain on the board to see out this probe to a final and transparent conclusion, not as some shadow chair to undermine the incoming Kevin Warsh, but rather as a helpful pair of steady hands.
Pro-Trump narrative
Powell's decision to linger at the Fed breaks with tradition and undermines the institution he claims to protect. For someone who constantly invokes norms, his choice to outstay his welcome is a contradiction that speaks for itself. Thankfully, Kevin Warsh will soon replace this obstructive culture with real accountability and sound policymaking.
