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Powell Evades Questions on Future as Fed Chair Amid Political Scrutiny

Federal Reserve Chair Jerome Powell repeatedly declined to answer questions about whether he will remain at the central bank, stating it was not the time or place for such discussions. He instead focused on economic policy, reiterating the Fed's commitment to independence from political influence and warning that losing public trust would be deeply damaging to the institution's credibility. Powell provided an economic update, noting inflation remains elevated partly due to tariffs, while consumer spending has been resilient but the housing sector weak. The Federal Open Market Committee decided to leave the key interest rate unchanged, with the economy entering 2026 on a firm footing.

Key Points: Fed Chair Powell Dodges Questions on His Future at Central Bank

  • Powell declines to comment on his Fed future
  • Defends central bank independence
  • Warns losing public trust is damaging
  • Says inflation remains "somewhat elevated"
  • Fed holds interest rates steady
2 min read

Powell dodges questions on his future at US Federal Reserve

Jerome Powell declines to comment on his future as Fed Chair, focusing on policy and defending central bank independence amid political questions.

"I really, once again, have nothing for you on that today. - Jerome Powell"

Washington, Jan 29

US Federal Reserve Chair Jerome Powell declined to comment on his future at the central bank during a wide-ranging press conference.

Asked whether he has decided to remain as a Fed governor, Powell said: "No." He added: "I really, once again, have nothing for you on that today."

Pressed on when a decision might come, Powell repeated that he had nothing to add.

When asked why he might consider leaving, Powell declined again. "There's a time and place for these questions," he said. "Not something I'm going to be getting into today."

Powell also declined to answer questions about possible subpoenas or political actions involving the Fed. "I have nothing for you on that today," he said.

He avoided speculation about any transition if a new Fed chair is nominated. He said such matters depend on Congress and declined to elaborate.

Powell instead focused on economic policy and the Fed's mandate. He reiterated the importance of central bank independence from politics.

"The point of independence is not to protect policymakers," Powell said. He said it is an institutional arrangement used by advanced democracies.

He warned that losing public trust would be damaging. "It would be hard to restore the credibility of the institution," he said.

Powell said he remains committed to that principle. "I'm strongly committed to that, and so are my colleagues," he said.

The Fed chair is appointed by the US President and confirmed by the Senate. The position plays a central role in setting US monetary policy. Questions about Fed leadership often intensify during periods of political scrutiny, though the central bank operates independently of the White House.

Meanwhile, addressing the reporters on Wednesday (local time), Powell said inflation is still "somewhat elevated," with tariffs pushing up goods prices.

The Federal Open Market Committee "decided to leave our policy rate unchanged," Powell said. The Fed kept the target range for the federal funds rate at 3.5 per cent to 3.75 per cent.

Powell said the economy "expanded at a solid pace last year" and is starting 2026 "on a firm footing." He said consumer spending has been "resilient." He said business investment has continued to grow. However, he said that housing "has remained weak."

- IANS

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Reader Comments

S
Sarah B
He's clearly avoiding the question because the decision isn't his alone. It's up to the President and Senate. But his focus on policy over politics is commendable. The US Fed's decisions have a ripple effect on our markets too.
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Priya S
"I have nothing for you on that today" – he said it how many times? 😅 It's a masterclass in dodging questions. But seriously, stability at the top of the Fed is important for global economic confidence. Hope the transition, if it happens, is smooth.
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Rohit P
The part about losing public trust is key. We've seen in India how important the RBI's credibility is. Once lost, it's very hard to get back. Powell is right to guard that fiercely, even if he's being evasive about his own plans.
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Michael C
As an observer from outside the US, I have to offer a respectful criticism. While independence is vital, this level of opacity about leadership plans can itself create market uncertainty. A slightly more transparent timeline would be helpful for international investors.
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Kavya N
The economic update is more relevant for us common folks. Inflation still elevated, interest rates on hold... sounds familiar. Our RBI is also walking a tightrope. Global central banks are all facing similar challenges.

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