Federal Reserve Chair Jerome Powell was asked about his future at the central bank beyond the end of his term this May and also offered some advice to his successor.
Powell spoke at a press conference Wednesday after the central bank left interest rates unchanged at its January meeting after it cut the benchmark federal funds rate by 25 basis points at each of its final three meetings last year.
His term as chairman of the Federal Reserve is set to expire in May, though he could remain at the Fed as a member of the central bank’s board of governors until January 2028, if he chooses to do so.
“Honestly, I’d say a couple of things. One is, stay out of elected politics. Don’t get pulled into elected politics, don’t do it,” he said.
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“Another is, our window into democratic accountability is Congress, and it’s not a passive burden for us to go to Congress and talk to people – it’s an affirmative, regular obligation,” Powell said.
“If you want democratic legitimacy, you earn it by your interactions with our elected overseers, and so it’s something you need to work hard at, and I have worked hard at it,” he added.
Powell went on to say that the last piece of advice to his successor is to appreciate the Federal Reserve’s staff, which he praised for its professionalism.
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“It’s easy to criticize government institutions in so many ways. I will tell whoever it is, you’re about to meet the most qualified group of people you not only have ever worked with, you will ever work with,” Powell said.
“When you meet Fed staff, and not everybody’s perfect, but there isn’t a better cadre of professionals more dedicated to the public well-being than those who work at the Fed,” the chair said.
President Donald Trump, who nominated Powell as Fed chair in 2017, has hinted he is close to announcing his pick for the next Fed chair.
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Potential nominees include former Fed Governor Kevin Warsh, National Economic Council Director Kevin Hassett, BlackRock chief investment officer of fixed income Rick Rieder and Fed Governor Christopher Waller.
Powell was also asked in Wednesday’s press conference if he has made a decision on whether he plans to remain on as a Fed governor and when that decision may be announced.
“No, and I really once again have nothing for you on that today,” Powell replied.
When asked in a follow-up on why he would want to leave under the circumstances, Powell responded, “Again, I don’t want to get into it… There’s a time and place for these questions, but not something I’m going to be getting into today.”
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