Source: Radio New Zealand
AFP
Outgoing US Federal Reserve Chairman Jerome Powell will stay on as a member of the central bank’s powerful rate setting board.
During his term, which ends next month, Powell has resisted huge pressure from US President Donald Trump to lower interest rates.
The Fed left its benchmark rate on hold on Thursday.
Powell was also subject to a criminal investigation into a Federal Reserve office rebuild. That investigation was seen by many commentators as an attack on the bank’s independence and prompted a joint letter of support for Powell from central bankers around the world.
The criminal investigation was dropped by prosecutors last week. However Powell noted at media conference on Thursday that the prosecutor involved had also said that they would not hesitate to reopen the case.
He said given that, he was going to stay on the Federal Reserve’s monetary policy board.
“I’ve said that I will not leave the board until this investigation is well and truly over with transparency and finality and I stand by that, I’m encouraged by recent developments and I am watching the remaining steps in this process carefully,” he said.
While Powell’s term as chair ends next month with Kevin Warsh set to take over, he can serve on the committee until 2028.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
