Money & Finance › The Fed, money supply & inflation › The Federal Reserve System (the Fed)
Jerome Powell, Fed chair 2018–2026
Chair Feb 2018–May 2026· Economist or figure
Fact, law or dataA rule, statute, definition or measured number.
Fed chair from 2018 to 2026 who led it through the COVID crash, the 2021–23 inflation surge and open clashes with the President.
See it on the Money & Finance map →How it works
A lawyer and former investment banker rather than a PhD economist, Powell joined the Fed Board in 2012 and became chair in February 2018. When COVID hit in 2020 he cut rates to zero and bought trillions in bonds. He first called the 2021 inflation 'transitory', then raised rates from near zero to 5.25–5.50% between March 2022 and July 2023. PCE inflation fell from about 7% to under 3% without a recession. His chair term ended in May 2026.
Why it matters
He steered through a pandemic, the worst inflation in 40 years and sustained attacks from a sitting President, making his tenure a test case for Fed independence.
Legacy
FOMC statements and press conferences, congressional testimony, and his January 2026 public statement calling Justice Department subpoenas a pretext to pressure the Fed on rates.
Debates and risks
Whether waiting until 2022 to raise rates let inflation take hold, and whether the soft landing was skill or luck, is debated.
Connections (5)
▸Jerome Powell, Fed chair 2018–2026 led the Fed's response to COVID-19 crash and rescue (2020)Fact, law or data
The connection
Powell's Fed moved within weeks: it cut rates to near zero on March 15, 2020, bought Treasuries and mortgage bonds without limit, revived 2008-era lending programs, and for the first time backed corporate and municipal bonds. The promise alone calmed markets before most of the money was used.
When and why
Federal Reserve, Washington, March 3 to April 9, 2020, with Treasury Secretary Steven Mnuchin, whose CARES Act funds covered potential losses.
How we know
Fed press releases and the H.4.1 balance sheet, which grew from about $4.2 trillion to about $7 trillion by June 2020.
Debates and risks
Whether the Fed kept buying bonds too long after markets healed, adding to inflation and asset prices, is debated.
▸Jerome Powell, Fed chair 2018–2026 initially called 'transitory' The 2021–23 inflation surgeFact, law or data
The connection
Through most of 2021 Powell said rising prices were 'transitory', the result of reopening bottlenecks. In November 2021 he retired the word, and from March 2022 the Fed raised rates 11 times, to 5.25–5.50%. Critics say the delay let inflation spread from goods into wages and services.
When and why
FOMC meetings and press conferences, 2021–2023; Powell dropped 'transitory' in Senate testimony on November 30, 2021.
How we know
His statements and testimony are on record, and the FOMC's own projections underestimated 2021–22 inflation.
Debates and risks
Whether earlier hikes would have prevented the surge, or only caused a recession without fixing supply shocks, is debated.
▸Jerome Powell, Fed chair 2018–2026 publicly defended Fed independence and political pressureFact, law or data
The connection
President Trump attacked Powell's rate decisions in 2018–19 and again from 2025, demanding sharp cuts and threatening to fire him. Powell said removal over policy was 'not permitted under the law' and kept the FOMC's course. In January 2026, after Justice Department subpoenas tied to his testimony on Fed building renovations, he called the probe a pretext to pressure rates.
When and why
Washington, 2018–2026; key moments include Trump's July 2025 visit to the Fed renovation site and Powell's January 2026 video statement.
How we know
The public record: Trump's posts and remarks, Powell's press conferences, including November 2024, and his 2026 statement.
Debates and risks
How far a President may legally go in pressuring or removing Fed officials was unsettled; the 2026 Supreme Court case over Governor Lisa Cook tested it.
▸Jerome Powell, Fed chair 2018–2026 chaired Federal Open Market Committee (FOMC)Fact, law or data
The connection
As Fed chair, Powell also chaired the FOMC, setting its agenda, building consensus and explaining decisions at a press conference after every meeting, a practice he began in 2019. He led it from zero rates in 2020 through 11 hikes in 2022–23 and cuts in 2024–25.
When and why
FOMC meetings in Washington, February 2018 to May 2026; by tradition the committee elects the Fed chair as its own chair.
How we know
FOMC statements list him as chair and record each vote; dissents, rare for most of his tenure, rose in 2025.
Debates and risks
Whether his consensus-building style muted useful disagreement, and whether rising dissents signaled a more divided committee ahead, are open questions.
▸Kevin Warsh, Fed chair since May 2026 succeeded Jerome Powell, Fed chair 2018–2026Fact, law or data
The connection
President Trump, who had attacked Powell over rates for years, nominated Warsh in January 2026 to replace him when Powell's chair term ended in May. The handover brought in a chair who promised changes in how the Fed talks to markets and manages its balance sheet.
When and why
Nominated January 2026, confirmed by the Senate, and sworn in as chair on May 22, 2026, in Washington.
How we know
The White House nomination, Senate Banking Committee hearing and confirmation vote, and the Fed's announcement of his swearing-in.
Debates and risks
Whether the new chair will move rates as the President hoped, or follow the committee majority Powell built, is an open question.