Jerome Powell’s Last Stand at the Fed

Jerome Powell had planned a straightforward exit from the Federal Reserve after eight years as chair. He intended to step away in mid-May for golf, guitar playing, time with grandchildren, and other private pursuits. Weeks before that date, however, he announced he would remain on the board of governors for the two years left on his term, departing from more than seventy-five years of precedent in which outgoing chairs left the institution entirely.

Powell’s Listening as a Leadership Tool

Colleagues and acquaintances describe Powell’s ability to repeat spoken sentences in reverse order as a marker of his unusually attentive style. In meetings with staff and with members of Congress, he tended to stay in listening mode rather than driving conversation. That habit helped him form working relationships across political lines during his first term, relationships he viewed as useful insurance against future conflicts. The same trait also shaped how he handled the Fed’s emergency actions in 2020, when the central bank quickly expanded its lending programs and asset purchases to steady markets after the pandemic began.

The Pattern of Conflict with the White House