LIVE: Chair Powell confirms that he will stay at the Fed after his term ends next month

Powell said the Fed’s internal split is not mainly about raising rates now. He said the disagreement is more about whether the central bank should keep a neutral policy bias or leave the door tilted toward cuts.

Asked about the Iran war, Powell said the oil shock is hitting Europe and Asia harder than the U.S. for now. Still, he said Americans would feel more pressure if the conflict lasts longer and prices climb further.

Powell said higher gas prices are already hurting drivers across the country, and those increases may continue. He said when households spend more at the pump, they have less disposable income for other purchases, which means there will be a hit to GDP.

Powell also said the Fed has to avoid using its tools for political goals. He said administrations often see central bank tools and want to redirect them toward other priorities, but the Fed has resisted that because it would pull monetary policy into politics and fiscal policy.

Powell said current policy is likely close to the neutral rate, which he placed somewhere in the 3% to 4% range. He said the Fed is prepared to move either way from here.

“If we need to hike, we will,” Powell said. He added that if the Fed needs to cut, it will send the opposite signal.

Federal Reserve Chair Jerome Powell said his decision to remain a Fed governor came down to one issue: protecting the central bank from legal pressure that could pull politics into rate policy.

Powell was asked at the start of the press conference why he chose to stay after his chair term ends. He said he had been preparing to retire, but events over the past three months changed his position.

Powell said the Fed has faced a series of legal challenges that could damage its ability to set monetary policy without weighing political interests. He also made clear that he was not talking about public criticism from elected officials.

The Department of Justice had been investigating Powell over the Fed renovation project and statements he made to Congress last year. That probe became another point of conflict in the department’s actions against opponents and critics of TRUMP.

Powell said the pressure is hurting the Fed as an institution and could endanger what matters most to the public: the ability to make interest-rate decisions without political influence.

He said he will step down when he believes the timing is right.

“I’m waiting, you know, for the investigation to be well and truly over with finality and transparency … And I will leave when I think it’s appropriate to do so.”

Powell also said his goal is “not to interfere” with the next Fed chair.

The Senate Banking Committee voted Wednesday to advance Kevin Warsh’s nomination to lead the Federal Reserve, putting TRUMP’s pick in line for a final vote before the Republican-led Senate.

The vote split fully by party. All 13 Republicans on the committee backed Kevin, while all 11 Democrats voted against him.

Sen. Elizabeth Warren, the panel’s top Democrat, said in a press release that it was the first fully partisan committee vote on a Fed chair nominee in the committee’s history.

Before the vote, Elizabeth criticized Kevin’s nomination and warned that confirming him would weaken the Fed’s independence from the White House.

“The Trump economy is in real trouble. Inflation is up, job creation is down. The stink of stagflation is in the air, and President Trump is getting desperate,” Elizabeth told the committee.

She said moving Kevin forward would bring TRUMP closer to what she described as an unlawful effort to take control of the Fed and force easier policy to lift the economy.

“No one is fooled,” Elizabeth said during Wednesday’s vote. “Trump is still going after control of the Fed, and he is keeping the threat of bogus criminal charges alive until he gets what he wants.”

Federal Reserve Chair Jerome Powell has started his scheduled press conference, which is likely to be his final one as Fed chair.

Powell said the recent rise in energy prices will lift headline inflation in the near term. He added that the wider effect on the economy is still uncertain, including how long the pressure could last.

Powell also confirmed that he does not plan to leave the Fed immediately when his term as chair ends on May 15. He said he will remain on the Fed Board of Governors for an unspecified period.

“After my term as chair ends on May 15th, I will continue to serve as a governor for a period of time to be determined,” Powell said.

He said he expects to take a quieter role after leaving the chair position. Powell added that there is only ever one chair of the Federal Reserve Board.

Before that, Powell congratulated Kevin Warsh after Kevin cleared the Senate Banking Committee vote on Wednesday morning. Powell said it was an important step and wished Kevin well as the confirmation process continues.

Powell also spoke about the Fed’s role and staff, saying the institution is resilient, capable, and filled with professionals who have strong talent and dedication.

He said serving with public officials across the Board of Governors and the wider Federal Reserve System has been a privilege.

The Federal Reserve left its benchmark rate unchanged at 3.50% to 3.75% on Wednesday, keeping policy steady while inflation remains above target and energy prices add new pressure.

In its FOMC statement, the Fed said economic activity is still growing at a solid pace. It also said job gains have been low on average, while the unemployment rate has barely changed in recent months.

The Fed said inflation remains elevated, partly because of the recent rise in global energy prices. It also pointed to the Middle East as a source of heavy uncertainty for the economic outlook.

The Committee repeated that it wants maximum employment and 2% inflation over the longer run. It said it is watching risks on both sides of that mandate.

The Fed said future rate decisions will depend on incoming data, the economic outlook, and the balance of risks. It also said it is ready to adjust policy if new risks threaten its goals.

Federal Reserve Chair Jerome Powell voted for the decision, along with John C. Williams, Michael S. Barr, Michelle W. Bowman, Lisa D. Cook, Philip N. Jefferson, Anna Paulson, and Christopher J. Waller.

Stephen I. Miran voted against the action because he wanted a 25-basis-point rate cut at this meeting. Beth M. Hammack, Neel Kashkari, and Lorie K. Logan also dissented, but for a different reason. They supported keeping rates unchanged, but did not back the statement’s easing bias at this time.

That split marks the highest level of dissent since 1992, turning a widely expected rate hold into a more divided Fed decision ahead of Powell’s departure.