Jerome Powell steps down after 8 years leading the US Fed, stays on board till 2028

After 3,018 days at the helm of the US Federal Reserve, Jerome Powell’s tenure as Chair has come to an end, marking the conclusion of his second four-year term leading the central bank.

Powell formally stepped down from the position on Friday, two days after his successor, Kevin Warsh, was confirmed by the Senate to take over as the next chief of the Federal Reserve.

His eight-year stint as Chair spanned a period marked by significant political and economic challenges, during which he led the central bank through multiple crises. With the transition now complete, Powell is handing over leadership to Warsh and has indicated that he intends to maintain a low public profile going forward.

Despite stepping down as Chair, Powell will continue to remain a member of the Federal Reserve Board. His separate 14-year term as a board member is set to run until January 2028, allowing him to stay within the institution beyond his leadership role.

This decision sets him apart from most of his predecessors, who typically exited the central bank after completing their tenure as Chair. Powell has stated that he plans to remain until he is satisfied that the Federal Reserve has successfully navigated challenges related to its independence, particularly in the face of pressures from the administration of Donald Trump.

His continued presence at the Federal Reserve could influence how his legacy is ultimately viewed, even as his formal leadership of the institution comes to a close.