Federal Reserve Chair Jerome Powell closed out his final press conference as chair on Wednesday, telling reporters he will not be holding the next post-meeting briefing as leadership prepares to transfer to Kevin Warsh in mid-June.
Powell used his remarks to reflect on the work accomplished during his tenure, saying he is proud of the results achieved alongside his colleagues at the central bank. He emphasized that market expectations continue to reflect confidence in the Fed's commitment to its 2 percent inflation target, and he said that this credibility has not eroded.
On the state of the economy, the outgoing chair described activity as continuing to push through successive shocks, noting that consumer spending has remained resilient. He told reporters that the Federal Reserve has not yet seen significant signs of slowing that could be linked to the recent increase in gasoline prices.
Powell also addressed his post-chair plans. He intends to remain on the Federal Reserve Board as a governor after his leadership term concludes in May. He cited ongoing attacks on the Fed's independence from the Trump administration as a motivating factor for staying on the board, but he made clear he will not try to undercut Kevin Warsh when Warsh assumes the chairmanship.
When the Federal Open Market Committee next meets to decide policy in mid-June, Warsh will be the official to lead any post-meeting news conference, Powell said.
Context and implications
Powell framed his departure from the chair role as a handoff rather than a break with the institution. He underscored market confidence in the Fed's inflation target while pointing to continued consumer spending as evidence of economic durability amid price fluctuations. At the same time, his decision to remain a governor and his explicit reference to political attacks on Fed independence signal continued attention to the institution's institutional integrity.
Details Powell offered were concise and limited to his assessment of market credibility, consumer behavior, gasoline-price effects to date, and the timeline around leadership transition and his board membership.