Fed Chair Powell hopes to clear his name ‘once and for all’ by staying on, says Roger Ferguson

Summary

Former Fed Vice Chairman Roger Ferguson discusses Fed Chair Jay Powell's decision to stay on the Board while a probe into headquarters renovations continues. The conversation covers the dynamic with incoming Chair Kevin Warsh, the unprecedented dissent at the latest Fed meeting, and whether the investigation is a political effort to pressure the Fed to cut rates. Ferguson defends Powell's independence and clarifies that the probe is part of a broader attempt to influence monetary policy.

• Powell will remain on the Fed Board until the investigation into renovation cost overruns is fully resolved.
• Treasury Secretary Scott Bessent called Powell's move 'a violation of all Federal Reserve norms.'
• Kevin Warsh's nomination as next Fed Chair cleared a procedural hurdle in Congress.
• The Fed left rates unchanged but saw three dissents on forward guidance, reflecting concern over sticky inflation.
• Ferguson argues the investigation is a subterfuge to pressure Powell to lower rates, not a genuine management issue.
• Andrew Ross Sorkin emphasizes that the conflict is about policy, not personal disputes.
• Ferguson defends Powell's record on inflation, noting he quickly reversed course after the 'transitory' mistake.
• The discussion highlights the tension between Fed independence and White House pressure.