What they're not telling you: # Fed Chair Powell Plans Historic Stay on Board—Raising Questions About Conflicts and Influence Fed Chairman Jerome Powell is breaking a 50-year precedent by announcing he will remain on the Federal Reserve Board until 2028, even after surrendering his chairmanship by law. The announcement arrived with notable timing: shortly after President Trump dropped his lawsuit against Powell regarding a $2 billion building project near the White House. Powell's decision to extend his tenure marks the first time in half a century that a Fed chairman has stayed on the board after term limits forced him out of the top role.
# THE TAKE: Powell's Encore Serves Wall Street Just Fine Moore wants Powell gone. That's rich—coming from a Trump loyalist whose real complaint isn't the Fed chair's competence, but his independence. Here's what actually happened: Powell kept rates higher, longer, protecting bank margins while crushing wage growth. The Fed's balance sheet expanded to $7.4 trillion under his watch—a gift to asset holders, a guillotine for renters. His "data-dependent" pivot? Translation: he follows markets, not labor markets. Moore's exit demand isn't principle. It's impatience. He wants a Fed chair who'll fold to political pressure, who'll juice asset prices on command. Powell's sin wasn't hawkishness—it was *appearing* independent while systematically favoring capital. The real story: Moore and Powell disagree on *timing*, not direction. Both serve the same master.
What the Documents Show
According to economist Stephen Moore, who closely tracks Federal Reserve policy, this represents a break from established norms. "This isn't the way it's done. It's bad form," Moore writes, flagging the unusual nature of Powell's choice to remain influential in monetary policy decisions despite losing his chairmanship. Powell's track record on his primary mandate—managing inflation—presents a stark picture. During his tenure, inflation met the Federal Reserve's target range of 1.8% to 2.2% in only one month: February 2021.
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Two-thirds of his time as chair saw inflation well above target. The record is particularly damaging given the real-world consequences. Powell's monetary decisions contributed to inflation reaching 9%—the highest level since the late 1970s—following what he characterized as "transitory" inflation after COVID-19. That miscalculation persists in Americans' grocery bills and household budgets today. Moore's critique extends to Powell's policy choices beyond inflation management. In 2018, Powell's "inexcusably high" interest rates nearly triggered a recession.
What Else We Know
Then, following COVID-19, Powell flooded the economy with cheap money—a reversal that fueled the very inflation spike that followed. Meanwhile, Moore contends Powell applied inconsistent standards to different administrations: he publicly attacked Trump's tariffs while ignoring the disinflationary effects of Trump's tax cuts, energy policies, and deregulation. During the Biden years, Powell rarely objected to the $4 trillion debt-financed spending spree that stoked inflation further. The timing of Powell's rate cuts in 2024—occurring months before the presidential election—warrants scrutiny, Moore suggests. Whether Powell's monetary decisions reflected sound policy judgment or political calculation remains an open question the mainstream financial press has largely avoided exploring. His extended board tenure means Powell will continue shaping monetary policy and interest rate decisions that directly affect ordinary Americans' borrowing costs, savings rates, and purchasing power.
Primary Sources
- Source: ZeroHedge
- Category: Money & Markets
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