Jerome H. Powell steps down as Federal Reserve chair after eight years

Powell will remain on the Fed's Board of Governors after leaving the top job, a move that could reshape crypto markets as his successor takes the wheel.

Add us on Google by Editorial Team May. 15, 2026

Jerome H. Powell is stepping down as chair of the Federal Reserve, closing out an eight-year tenure that spanned a pandemic, historic inflation, and aggressive rate hikes. He’s not leaving the building entirely, though. Powell announced he will stay on the Federal Reserve’s Board of Governors after relinquishing the chair.

The tenure that shaped modern monetary policy

Powell took the chair on February 5, 2018, appointed by then-President Donald Trump. His term as chair was set to run through May 2026, meaning this departure comes before the clock fully ran out.

Powell has said he “long planned on retiring” from the role, but a series of political and legal pressures complicated the timeline. In March 2026, a court ruling quashed grand jury subpoenas that had been aimed at Powell, a striking indication of the degree to which political forces attempted to pressure him toward the exit.

Advertisement " document.getElementById("alkimi-leaderboard").innerHTML = iFrame var iframeDoc = document.getElementById(idIFrame).contentWindow.document pbjs.renderAd(iframeDoc, highestCpmBids[0].adId); } } setTimeout(function () { renderAds(); }, FAILSAFE_TIMEOUT);

In January 2026, 11 major central banks issued a joint statement expressing solidarity with Powell during what had become an unusually hostile political environment for a Fed chair. Through it all, Powell stayed focused on the Fed’s inflation mandate. His reasoning for not leaving sooner, by his own account, was a desire to see through the work on bringing inflation back to target. The Fed’s aggressive rate-hiking cycle, which began in 2022, represented one of the most dramatic tightening campaigns in decades.

What Powell’s Fed meant for crypto

The near-zero interest rate environment of 2020 and 2021 sent risk assets, crypto included, into the stratosphere. When Powell pivoted to fighting inflation with rate hikes starting in 2022, the same assets cratered. Bitcoin, Ethereum, and the entire altcoin universe moved in near-perfect inverse correlation with Fed hawkishness for the better part of two years.

Beyond rates, Powell’s Fed also shaped the regulatory atmosphere around stablecoins and banking access for crypto firms. The Fed’s cautious stance on digital assets during Powell’s tenure contributed to an environment where banks were hesitant to serve crypto companies.

Powell’s decision to remain on the Board of Governors rather than departing entirely is being framed as a move to ensure continuity during the transition. In practical terms, it means he’ll still have a vote on monetary policy decisions, even if he’s no longer the one guiding the conversation or delivering the post-meeting press conferences.

What investors should actually watch

The Federal Open Market Committee has 12 voting members at any given time. The stablecoin angle is worth watching closely. Legislative efforts around stablecoin regulation have been building momentum, and the Fed’s posture toward these dollar-pegged tokens has been a key variable. A new chair could accelerate or slow the Fed’s engagement with digital dollar alternatives.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.