Treasury Secretary Scott Bessent criticized Federal Reserve Chair Jerome Powell for choosing to remain on the Fed’s Board of Governors after his term as chair ends on May 15, an uncommon move that hasn’t been made since 1948.
The decision would allow Powell to continue serving as a voting member of the Board and the Federal Open Market Committee, effectively preventing President Trump from filling that seat with a new appointee. Powell’s term as a governor does not expire until 2028, and his continued presence limits the administration’s ability to expand its influence over the seven-member Board of Governors.
It is unusual for soon-to-be-former Fed Chair Jay Powell to stay on at the @federalreserve. For someone who speaks so often of norms, his unilateral decision to stay flies in the face of tradition.
— Treasury Secretary Scott Bessent (@SecScottBessent) April 29, 2026
Kevin Warsh will bring about a new day at the Fed, with accountability,… pic.twitter.com/QAxbwqNo2S
"Secretary, we look forward to the Kevin Warsh era at the Fed. I know you've been a big supporter. Unfortunately, today, ungentlemanly, J. Powell has decided to stay on as a governor," Fox News' Larry Kudlow said. "It's only the second time in 113 years. I don't know why. You know, let's just say, why did he have to do it? Why not just leave it up to Kevin Walsh for a new era?"
"Well, Larry, I want to come back to the Warsh Fed, but I will say it's highly unusual what soon to be former chair Powell did. And Larry, to be clear, the last time that a Fed chair stayed on the board, it was at the request of the president. And I can promise you, if President Trump did not request for J. Powell to stay," Bessent said. "I think it's highly unusual for someone who says he's an institutionalist and cares about norms at the Fed. This is a violation of all Federal Reserve norms. And I've got to tell you, also, Larry, I think it is an insult to Kevin Warsh, Mickey Bowman, and Chris Waller to think that these other Republican nominees do not care about the institution of the Fed and that he alone can maintain the integrity of the Fed."
"We've had the worst inflation, perhaps in our country's history, certainly in 47 or 50 years under this chairman," the Treasury Secretary continued. "And I think the good news is today, Kevin Warsh cleared committee. He's going to be confirmed. He will be the new Fed chair on time. And I think it's going to be a new day at the Fed. And again, all President Trump wanted was accountability. We're going to get an IG (Inspector General) report on the building. That's all he ever asked for. And I think that we will have a great monetary policy. I think we will have great management in terms of the regulatory and of the facilities."
This comes just a day after the Federal Reserve opted to hold interest rates steady in what its final decision under Jerome Powell.
President Trump has repeatedly criticized Powell for failing to lower interest rates more aggressively, which the president has argued has slowed the United States' economic growth. The feud escalated in recent months after the Department of Justice opened an investigation into the Fed chair over allegations that he misled Congress about the cost of renovations at the Federal Reserve headquarters in Washington, D.C.
That investigation, however, was later paused in an effort to advance the president’s nominee for Fed chair, Kevin Warsh, out of committee and toward a final confirmation vote in the Senate.