Unhedged The Fed holds steady
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Apr 30, 2026 They discuss Jay Powell’s surprising decision to stay on the Fed board after his final remarks. They explore how that move reshapes appointment dynamics and succession prospects. They analyze recent US growth and sticky inflation data and contrast central bank dilemmas in Europe and the UK. They end with light long/short picks including longevity and retirement quirks.
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Powell's Low Profile Joke And Unusual Stay
- Jay Powell joked he would 'keep a low profile' and physically bent his knees behind the podium during his swan song press conference.
- Robert Armstrong and Katie Martin used the moment to highlight Powell's unusual decision to remain on the Fed board after his chair term ended, breaking precedent.
Staying Put To Shield Fed Independence
- Powell stayed on as a Fed governor until 2028 to wait for final clarity after a DOJ investigation was suggested by the Trump administration.
- The move was framed as a defensive step against politicised attacks and to avoid leaving the Fed vulnerable after his chair term ended.
Political Cost Raises Protection For The Fed
- Keeping Powell at the Fed makes political attacks more institution-focused and costly for the administration, discouraging future assaults on central bank independence.
- Greg Ip argued this raises the political cost for Trump to punish Powell or reshape the Fed quickly.