Jerome Powell announced he will stay on the Federal Reserve Board as a governor after his term as chair ends in May. This move is seen as an effort to counter political pressure from the Trump administration, which has launched a DOJ investigation into Powell over a renovation project.
Kevin Warsh is expected to be nominated as the next Fed Chair. However, Republican Senator Thom Tillis has said he will block all Fed nominations until the DOJ investigation is resolved.
Prediction markets are betting heavily on Powell’s departure as chair by May 31, with the May 31 contract trading at 97.8% YES.