Jerome Powell don deliver wetin be im likely last speech as Federal Reserve chair. Di meeting wey hold for New York, di central bank decide to keep interest rate steady. Di decision no surprise anybody, as inflation still high and di war for Iran dey push energy prices up.
Powell begin im yarn with joke, im duck down behind podium like say im dey hide. Di financial journalists for di room laugh. But when im answer serious, im say im go never serve as shadow governor to Kevin Warsh, di man wey go likely take over as chair. “I dey go back to being governor. I respect di role of chair,” Powell yarn. Im add say im don spend six years for board before.
Di transition from Powell to Warsh go be “very standard kind of transition process,” Powell talk. But im say im no don talk to Warsh since January. “I congratulate am for dinner for January. I no know wetin normal process be, but I think dis one go be standard,” Powell tok.
Powell yarn say di US economy dey expand, but “inflation don move up with growing global energy prices.” Im mention say di war for Middle East dey contribute to high uncertainty. Still, economic activity dey grow at solid pace, and consumer sentiment dey resilient.
Di Fed statement include “easing bias,” meaning say di bank dey consider to cut rate for next meeting if data show am. Four committee members no gree with dat bias, and dis be di first time since October 1992 wey governors dissent like dat. Di war for Iran dey split di central bank.
Powell say im no get problem wit politicians wey dey criticise Fed actions, but legal attacks from Trump administration dey “batter di institution and put at risk wetin really matter to public.” Im talk say di attacks be “unprecedented for our 113-year history.”
Di US Justice Department don drop investigation into Powell, but im say im no go leave Fed board until di matter “well and truly over.” Di investigation don pass to Fed office of inspector general, but Powell no sure say dat satisfy im condition.
Kevin Warsh don get approval from Senate Banking Committee along party lines, and im dey go for full Senate vote. Powell congratulate Warsh and wish am well. Di Fed work only dey effective as public understanding, Powell yarn. Im describe di institution as resilient and professional.
Interest rates don be source of strife between Powell and President Trump, wey don demand cuts. Di drama dey continue as Warsh go soon take over, and markets dey watch to see wetin go happen next.
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