Federal Reserve Chair Jerome Powell has decided to remain in his position after the Department of Justice dropped a probe into his testimony about the Fed’s headquarters renovation. Powell had called the investigation retaliatory and linked to the Trump administration.
His decision comes amid political maneuvering, with Senate Republicans blocking Trump’s Fed appointments until the legal situation was resolved. Powell’s term as chairman was set to expire in May 2026.
Market pricing now shows only a 1.6% chance of Powell leaving by May 14, but a 97.4% probability of his exit by May 31. Analysts view his continued leadership as a stabilizing factor for markets.