Jerome Powell has never been known for grandstanding. He does not needle politicians on social media, and rarely offers sweeping ideological declarations. Even now, as his tenure as Federal Reserve chair appears to be drawing to a close under intense political scrutiny, Powell’s message is restrained and firm.
Speaking after the Fed’s policy meeting on Wednesday — in which policymakers voted to hold the federal funds rate at 3.50%-3.75% — Powell was pressed repeatedly about his own future as chair and about a Justice Department investigation that has enveloped the central bank’s leadership.
But when asked by a CNN reporter what advice he would give the next Fed chair, Powell paused, allowed himself a light smile, and shrugged almost imperceptibly. He said he had “a couple of things” to offer.
Then came the first, delivered plainly: “Stay out of elected politics — don’t get pulled into elected politics. Don’t do it.”
That came from the chair of the world’s most powerful central bank, who has spent eight years absorbing shocks like the pandemic panic, inflation surges, aggressive rate cycles, and sustained White House pressure.
The Anti-Politician At The Helm
A former investment banker and lawyer, Powell was an unconventional choice for Fed chair when President Donald Trump nominated him in 2017. He lacked a PhD in economics and came from outside the Fed’s traditional academic pipeline.
That background shaped his leadership style. During the pandemic, Powell presided over the fastest deployment of emergency monetary tools in the Fed’s history. Later, when inflation surged to four-decade highs, he oversaw one of the most aggressive tightening cycles in modern times, a pivot that earned him sharp criticism from both political parties. By 2025, as inflation cooled and growth softened, the Fed reversed course again, cutting rates amid mounting political pressure to move faster.
Through it all, Powell refused to frame decisions as political concessions or rebukes. Monetary policy, he insisted, was about data, and not elections.
Accountability Without Giving Up
Powell’s second message to his successor was more nuanced and more revealing of how he views democracy’s relationship with central banking.
“Our window into democratic accountability is Congress,” he said. “It’s not a passive burden to go to Congress… it’s an affirmative, regular obligation.”
Over eight years, Powell made himself a familiar figure on Capitol Hill, testifying frequently and cultivating relationships across party lines. Those appearances were often uncomfortable as lawmakers pressed him on inflation, employment, bank failures, and inequality. But Powell has treated them as essential to the Fed’s legitimacy.
“It’s something you need to work hard at,” Powell said.
The Fed chair has defended this view even as President Trump publicly criticized him for resisting deeper rate cuts and, more recently, as the administration escalated tensions by launching a criminal investigation tied to cost overruns at a Fed renovation project — an extraordinary move that rattled markets and reignited fears of political encroachment.
Faith In The Machine
The third strand of Powell’s advice was perhaps the most personal.
“It’s easy to criticize government institutions in so many ways,” Powell said. But when you meet Fed staff, he added, “you’re about to meet the most qualified group of people you not only have ever worked with, but you will ever work with.”
For Powell, the Fed is a workforce of economists, analysts, and supervisors whose legitimacy rests on expertise rather than popularity.
“There isn’t a better cadre of professionals more dedicated to the public well-being than those who work at the Fed,” he added.
Succession Looms
Financial markets are already bracing for life after Powell. The 72-year-old’s term ends in May, and he has two more policy meetings before that.
Prediction markets and analysts currently list BlackRock‘s Rick Rieder, former Fed Governor Kevin Warsh, current Fed Governor Christopher Waller, and National Economic Council Director Kevin Hassett among the leading potential successors.
Trump reportedly continues weighing his options as he seeks a nominee more aligned with his economic priorities. The U.S. leader has repeatedly attacked Powell and the Fed more broadly, arguing it should cut interest rates aggressively, even as inflation remains well above the 2% target.
Image via Shutterstock
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