Powell to Remain on the Fed Board Through 2028
Federal Reserve chair Jerome Powell said he will remain on the Federal Reserve Board after stepping down as Chair on May 15. His governor term runs through early 2028, a rare break from decades of precedent.
Powell tied the decision to an ongoing DOJ legal dispute involving the Fed’s headquarters renovation oversight. He said the DOJ paused a criminal matter and would not reopen it without a new referral from the Fed’s Inspector General, while he will stay until the process reaches “complete and transparent” resolution. He also signaled he will stay “low-profile” and not interfere with Kevin Warsh’s FOMC leadership.
In politics, the move drew criticism from the Trump administration, with the Treasury Secretary accusing Powell of violating Fed norms. Markets were also reacting to the Fed’s current rate stance, which was held at 3.5%–3.75%.
For crypto traders, the key takeaway is that Federal Reserve Board stability—together with legal and political uncertainty—can shift rate expectations, USD liquidity conditions, and risk sentiment, which may translate into near-term BTC and ETH volatility.
Neutral
Powell staying on the Federal Reserve Board should reduce the risk of an abrupt governance change at the top, which can be mildly supportive for stable rate expectations. However, the same decision highlights unresolved legal and political uncertainty around Fed oversight, which can keep traders cautious and add volatility around USD/liquidity and risk sentiment—channels that affect BTC/ETH.
In the short term, the political headlines and DOJ-related uncertainty can pressure or whipsaw crypto prices, especially if rate-path expectations wobble. In the longer term, if the DOJ matter is cleanly closed and Powell fully steps back from any active role, the governance uncertainty premium could fade, which would be more neutral for BTC/ETH. Overall, the net effect is likely mixed, so the expected impact on crypto price direction is neutral rather than one-sided bullish or bearish.