Jerome Powell offers advice for next Fed chair, addresses his future at central bank
Fed chair emphasizes importance of working with Congress and praises central bank staff as 'most qualified group of people'
FOX Business White House correspondent Edward Lawrence reports on 'Making Money' as the Federal Reserve announces its decision to leave rates unchanged.
Federal Reserve Chair Jerome Powell was asked about his future at the central bank beyond the end of his term in May and also offered some advice to his successor.
Powell spoke at a news conference Wednesday after the central bank left interest rates unchanged at its January meeting after it cut the benchmark federal funds rate by 25 basis points at each of its final three meetings last year.
His term as chairman of the Federal Reserve expires in May, though he could remain at the Fed as a member of the central bank's board of governors until January 2028 if he chooses to do so.
"Honestly, I'd say a couple of things. One is stay out of elected politics. Don't get pulled into elected politics, don't do it," he said.
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Federal Reserve Chair Jerome Powell offered advice to his successor during a January news conference after the central bank's rate decision. (Amanda Andrade-Rhoades/Reuters)
"Another is, our window into democratic accountability is Congress, and it's not a passive burden for us to go to Congress and talk to people. It's an affirmative, regular obligation," Powell said.
"If you want democratic legitimacy, you earn it by your interactions with our elected overseers, and so it's something you need to work hard at, and I have worked hard at it."
Powell went on to say that the last piece of advice to his successor is to appreciate the Federal Reserve's staff, which he praised for its professionalism.
President Donald Trump has pressed Powell to cut interest rates, and the DOJ opened a criminal probe into Powell's testimony about the central bank's renovation of its headquarters. (Olivier Douliery/Bloomberg/Getty Images)
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"It's easy to criticize government institutions in so many ways. I will tell whoever it is, you're about to meet the most qualified group of people you not only have ever worked with, you will ever work with," Powell said.
"When you meet Fed staff, and not everybody's perfect, but there isn't a better cadre of professionals more dedicated to the public well-being than those who work at the Fed."
President Donald Trump, who nominated Powell as Fed chair in 2017, has hinted he is close to announcing his pick for the next Fed chair.
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NEC Director Kevin Hassett and former Fed Governor Kevin Warsh are among the leading contenders for Trump's Fed chair pick. (Anna Moneymaker/Tierney L. Cross/Bloomberg/Getty Images)
Potential nominees include former Fed Governor Kevin Warsh, National Economic Council Director Kevin Hassett, BlackRock Chief Investment Officer of Fixed Income Rick Rieder and Fed Governor Christopher Waller.
Powell was also asked at Wednesday's news conference if he has made a decision on whether he plans to remain on as a Fed governor and when that decision may be announced.
"No, and I really once again have nothing for you on that today," Powell replied.
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When asked in a follow-up why he would want to leave under the circumstances, Powell responded, "Again, I don't want to get into it. … There's a time and place for these questions, but not something I'm going to be getting into today."