- Jerome Powell confirmed his exit as Federal Reserve chair, with Kevin Warsh named successor
- Powell will remain on the Fed board until an appropriate time despite stepping down as chair
- Powell pledged no interference in transition and expects Warsh to act independently
Federal Reserve Chair Jerome Powell on Wednesday confirmed that he would be exiting as the chief of the monetary policy authority, thereby indicating a smooth transition as President Donald Trump has picked Kevin Warsh as his successor.
Powell, while briefing the press following the conclusion of the Federal Open Market Committee (FOMC) meeting, said this was his "last" FOMC meeting as its chair. He, however, noted that he plans to stay on the Fed board till an appropriate time.
"I will leave the Fed when it's appropriate to do so. The recent events have left me no choice but to stay," he told reporters, referring to the graft probe into the Fed building renovation case, in which his name was earlier dragged.
Even as the Department of Justice dropped criminal inquiry against him last week, Powell said he stands by his view that he would remain on the Fed board till the case is completely addressed.
The DoJ, while noting on Friday that the matter has been closed, said that it would “not hesitate to restart a criminal investigation should the facts warrant doing so."
Powell's comments came after the Fed retained interest rates in the range of 3.5%-3.75%, as it pointed towards the Middle East crisis that has elevated inflation concerns.
ALSO READ: Fed Keeps Interest Rates On Hold As Iran War Spikes Inflation Concerns
'Won't Interfere'
Powell noted that he would not interfere in the transition of responsibilities to Kevin Warsh, whose appointment as the Fed chair was cleared by the US Senate panel on Wednesday.
"My intention is not to interfere... I will continue to serve as a Governor for a period of time. I plan to keep a low profile," he said.
The new leadership, led by Warsh, will have an "important role" in rate guidance for the period ahead, Powell said, even as he stated that the incoming economic data is likely to determine the rate cut trajectory.
"Rate guidance could conceivably change at the next meeting, Powell said, while clarifying that he won't give Warsh any advice for now.
"I think this will be a standard, normal transition process," the outgoing Fed chair added. On being asked whether Warsh would not be influenced by political pressure, Powell said he would believe that his successor would act independently.
Powell, notably, served as the Fed chair for about eight years. He came under intense criticism from the White House over the past year, as he refused to cut the lending rates at the pace at which President Donald Trump asked.
The rate cuts were paused for the first nine months of Trump's presidency, as the policy to levy so-called reciprocal tariffs on global trading partners raised the inflation outlook. This put Powell at loggerheads with Trump, who announced in January that he has picked Warsh as his replacement.
ALSO READ: Gold Price Plunges 1.5% As Fed Keeps Rates Steady, Cites War-Triggered Inflation
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