Jerome Powell has announced he will remain as a Federal Reserve governor after his term as chair concludes, a move widely interpreted as a stabilizing signal for Wall Street.
The decision comes amid ongoing pressure from President Donald Trump to lower interest rates. Bill Dudley, former New York Fed President, noted that Powell’s choice helps reassure market participants during a period of economic uncertainty.
Market reaction was immediate. On Polymarket, the probability of Powell being out as Fed Chair by May 14, 2026, dropped to 1.6%, while the May 15 contract fell sharply to 23.5%, down from 78% just 24 hours earlier. Analysts see this as reducing the urgency for a leadership change at the central bank.
Investors should watch for further statements from Powell or the Fed, as well as any political developments from the Trump administration that could shift sentiment again. Economic data releases in the coming weeks may also influence the Fed's strategic direction.