Jerome Powell defies Trump as he insists he has 'no choice' but to stay on at the Federal Reserve
Outgoing US Federal Reserve chief Jerome Powell last night insisted he had ‘no choice’ but to stay on at the central bank – in a final act of defiance against Donald Trump.Powell delivered his final interest rate decision as chairman but will remain as a rate-setting official after the President’s onslaught on the Fed’s independence.He said the attacks on the central bank were ‘battering the institution’ and that instead of retiring as previously planned he would remain and serve under his successor Kevin Warsh.Trump has been infuriated by the Fed’s failure to cut rates under Powell and had repeatedly threatened to fire him.The President will have been further riled by its decision again to leave rates on hold last night.It came as, across the pond, the Bank of England prepared to deliver its latest interest rates decision today. Defiance: Outgoing US Federal Reserve chief Jerome Powell delivered his last interest rate decision as chair of the Fed but said he has decided to remain as a rate-setting official The Bank is widely expected to leave rates on hold while slashing economic forecasts as a result of the Iran war.Last night’s Fed decision demonstrated a growing split over the path of US rates as the conflict drives up oil prices, putting pressure on inflation.Some officials now reject the assumption that the next move in rates must be a cut. But the debate was overshadowed by Powell’s defiant announcement of his decision to stay on.It was prompted by the Department of Justice’s decision to launch a criminal probe into him over the cost of the central bank’s renovation projects, which Powell has said is merely a pretext designed to pressure the Fed to cut rates.That investigation has now been closed but Powell highlighted comments from a top official suggesting that it could be reopened and said he would stay on ‘for a period of time to be determined’.He said: ‘I am waiting for the investigation to be well and truly over with finality and transparency, and I will leave when it is appropriate to do so.’Powell said he was concerned about a ‘series of legal attacks’ on the Fed – while brushing off the separate ‘verbal criticism by elected officials’, a clear reference to the barrage of personal insults Trump has flung at him.He added: ‘I worry that these attacks are battering the institution and putting at risk… the ability to conduct monetary policy without taking into consideration political factors.‘I had long planned to be retiring, and the things that have happened in the last three months have left me no choice but to stay until I see them through.’DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
Share or comment on this article:
Jerome Powell defies Trump as he insists he has 'no choice' but to stay on at the Federal Reserve
