Powell to Stay on Federal Reserve Board, Leaving at Own Timing

Financial outlets focus on how the Powell–Trump clash could affect the path of U.S. interest rates, bank regulation, and market confidence. They stress that Powell’s presence offers continuity for investors but also raises the risk of noisy political fights that could shake expectations about future Fed decisions. Many expect markets to react more to any sign that Trump could replace or sideline Powell than to Powell’s decision to stay by itself.

• •Powell’s continued role as governor gives investors a familiar voice on the Federal Open Market Committee during a sensitive phase for inflation and growth.
• •Open conflict between Trump and Powell could inject extra volatility into Treasury yields and the U.S. dollar as traders reassess the Fed’s reaction function.
• •If Trump gains power and installs allies at the Fed, markets may price in faster rate cuts and looser financial regulation.
• •Fed officials are trying to reassure investors that policy decisions will remain driven by economic data despite political attacks.
• •Banks and large asset managers are closely tracking how any Warsh–Powell clash might shift the balance on future rate and regulatory votes.