Bloomberg Businessweek Instant Reaction: Jay Powell on the Fed Decision
Apr 29, 2026
Jeffrey Rosenberg, BlackRock fixed-income strategist, offers bond and macro perspective. Mike McKee, Washington reporter, provides on-the-ground Fed coverage. Jim Bianco, independent market analyst, gives candid market commentary. They discuss Powell staying on as governor, Fed independence and legal risks, committee dissent and policy language, and market reactions to rates, oil and inflation.
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Powell Stays To Protect Fed Independence
- Jay Powell warned Fed independence is at risk from legal attacks and will remain a governor after his chair term to protect institutional independence.
- Powell said he will keep a low profile but stay until transparency and finality on probes, citing concern over political interference.
Fed Moves Closer To Neutral Reaction Function
- The Fed showed an easing-bias debate with an 8-4 vote and growing support for shifting to a neutral, symmetric reaction function.
- Powell said more members could support removing easing language soon but a majority still opposed changing now.
Critique That Powell's Move Appears Political
- Jim Bianco criticized Powell's decision to stay as political, saying it disrupts oversight and shields the Fed from scrutiny of a costly building project.
- Bianco compared Powell's stance to resisting institutional change and warned of long-term ramifications.