All articles tagged with #powell
In his first FOMC as Fed chair, Kevin Warsh kept rates unchanged but used the post-meeting briefing to place blame for elevated inflation on his predecessor Jerome Powell and President Trump, while moving away from forward guidance and avoiding a dot-plot forecast, as some policymakers still expect higher rates by year-end, injecting uncertainty into markets.
Powell, stepping back to a Federal Reserve Board role as Kevin Warsh takes the reins, used a speech tied to a Kennedy Center award to reaffirm the Fed's independence and acknowledge past policy missteps, delivering an indirect jab at Trump while signaling that inflation remains uncertain amid energy-price pressure from the Iran conflict; with markets at record levels but policy paths still data-driven, the Fed faces a delicate balancing act that could temper Wall Street's rally if inflation surprises persist.
Kevin Warsh is sworn in as the Federal Reserve chair, taking charge of a divided central bank amid stubborn inflation; the ceremony, hosted at the White House, marks a rare transition as he pledges a reform-minded, independent approach to price stability and maximum employment, while Powell stays on the Board and markets eye possible rate hikes later this year.
Former Fed Chair Jerome Powell’s final remarks included a six-word warning on stock valuations—'equity prices are fairly highly valued'—a message that could reverberate through Wall Street for years as the CAPE ratio sits at a historically elevated level, a setup historians note has preceded notable market pullbacks.
Jerome Powell’s eight-year tenure as Fed chair is portrayed as a duty-driven ride through the pandemic, the surge in inflation, and growing political pressure, starting with unprecedented easing and a rapid balance-sheet expansion, then a slow pivot to tighten policy once inflation proved persistent, culminating in aggressive rate hikes that cooled prices while aiming to protect independence and avoid a recession.
As Powell steps down after eight years as Fed chair, economists credit his crisis leadership and steadfast defense of the Fed's independence amid pandemic shocks, inflation surges, and political pressure. His tenure includes guiding monetary policy through a severe inflation period, achieving a notable soft landing, and facing critique for delaying rate hikes in 2021. He will hand the chair to a Trump-picked successor while remaining a Fed governor, leaving a legacy focused on crisis management and institutional independence.
Powell’s tenure will be judged on how he fought inflation with aggressive rate hikes while resisting political meddling, aiming to preserve the Fed’s independence even as critics warned of recession risks; as inflation cooled, questions remain about missteps and the durability of the central bank’s credibility.
Senators approved Kevin Warsh for a 14-year term on the Federal Reserve Board, paving the way for a possible chair bid as Jerome Powell’s tenure ends; the vote was 51-45 with one Democrat (John Fetterman) crossing party lines. The live blog also covers a Palm Beach field hearing into Jeffrey Epstein’s trafficking crimes, defense spending testimonies, inflation at 3.8% driven by energy costs, and President Trump’s upcoming trip to China for talks with Xi Jinping.
Powell will remain on the Federal Reserve Board after his chair term ends, breaking a 75-year tradition that former chairs depart the board. The move comes amid tense relations with Trump and a DOJ probe into a Fed HQ renovation (now referred to an inspector general for review), but near-term policy impact may be limited. At Powell’s last chair meeting, the FOMC kept rates at 3.50–3.75% with one dissent; Powell’s continued presence could influence future, more dovish appointments, yet the majority on the committee still decides policy, leaving the market impact uncertain.
As Jerome Powell’s May 15 departure as Fed chair approaches, he credits inflation to Trump-era tariffs and the Iran conflict, signaling that rate cuts are unlikely in 2026 and possibly longer. With policy now clearly data-driven and not politics-driven, the already expensive stock market faces downside risk as investors reassess valuations in a higher-rate environment.
The Motley Fool warns that May 15 could mark a pivotal, volatile moment for stocks: Powell’s exit as Fed chair and the likely shift to hawkish nominee Kevin Warsh could unleash a more divided FOMC, pursue balance-sheet reduction, push up long-term rates, and threaten the multi-year stock rally by loosening liquidity and raising funding costs.
Facing a Monday deadline, U.S. Attorney Jeanine Pirro appears to abandon plans to appeal Judge Boasberg’s ruling in her criminal probe of Federal Reserve Chair Jerome Powell and will instead file a motion to vacate, signaling a strategic shift away from demanding Fed documents on cost overruns as she weighs next steps and awaits Inspector General Horowitz’s report.
Powell wraps eight years as Fed chair by announcing he will remain on the rate-setting committee as a governor after May 15, defending the central bank’s independence amid political pressure and a DOJ probe into his actions related to the Fed’s renovation. His tenure included pandemic-era emergency rate cuts, followed by aggressive hikes to tame inflation, and a leadership style framed by integrity and reliance on evidence.
Powell’s last FOMC meeting kept rates at 3.50%–3.75% but showed a record dissent against easing, suggesting no rate cuts in 2026. With the market’s CAPE ratio around 40—the highest since 2000—stocks face downside risk if borrowing costs stay high and easing is off the table. The development marks a potentially dubious turning point for Wall Street as valuations remain historically stretched.
Federal Reserve Chair Jerome Powell and the FOMC updated their rate outlook to a hawkish, higher-for-longer stance, suggesting rate cuts may be delayed. The update rattled Wall Street, sending equities lower and increasing volatility as investors priced in tighter financial conditions.