Overview
- Speaking on Monday at the John F. Kennedy Profile in Courage Award, Jerome Powell said the Fed is undergoing a “stress test” and warned that removing officials for policy differences would destroy the institution’s credibility.
- Powell stepped down as chair in mid‑May but chose to remain on the Board of Governors through 2028 to help protect the Fed’s independence and to deny the White House an immediate vacancy to fill.
- Kevin Warsh was sworn in as Fed chair on May 22, creating a leadership split between the new chair and Powell’s continued role as a governor.
- The Supreme Court is expected to rule soon on President Trump’s bid to remove Governor Lisa Cook, a decision that could change the legal standard for removing Fed governors and reshape board politics.
- A Justice Department investigation into an estimated $2.5 billion Fed headquarters renovation remains active and has been used by the administration in its pressure campaign, adding legal and market uncertainty about the central bank’s future governance.