Episode summary
Instant Reaction: Jay Powell on the Fed Decision | Bloomberg Businessweek
Bloomberg Businessweek Daily
· · 26 min · Hosts: Tom Keene, Jon Ferro, Lisa Abramowicz, Carol Massar, Tim Stenovec
Summary
Jay Powell said he will remain at the Federal Reserve as a governor after his term as chair ends on May 15, framing the move as a response to legal and political attacks on the central bank’s independence. The discussion focused on whether Powell is trying to protect the Fed from further pressure, and whether staying on could complicate any effort by President Trump to reshape the board. The host also highlighted Powell’s comment that he plans to keep a low profile and that Kevin Warsh, once confirmed, will be the next chair.
The bigger market story was the Fed’s 8 to 4 vote, with four dissents and three members pushing to remove the easing bias. Powell said a growing number of policymakers could support a more neutral stance, but most were not ready yet. Commentators said that suggests the committee is moving closer to a symmetric reaction function, though not there yet.
Oil and inflation dominated the reaction. Brent briefly topped 120, front-end yields rose, and guests argued that persistent energy prices could keep inflation elevated and make rate cuts harder to justify. One guest said the bond market is now focused on the five-year point and the front end, while the long end needs more term premium if borrowing pressures persist.
Key takeaways
- Powell said he will stay on as a Fed governor after May 15, citing attacks that are "battering the institution" and threatening Fed independence.
- The Fed voted 8 to 4, and three dissents favored dropping the easing bias, signaling a move toward a more neutral policy stance.
- The host said the committee is "getting closer but they're not there yet," suggesting a future shift may come as soon as the next meeting.
- A guest argued Powell may be staying to avoid giving President Trump another immediate appointment opportunity at the Fed.
- Rising oil prices, with Brent briefly above 120, were described as the key inflation risk that could delay any easing.
- Another guest said the five-year Treasury point is the best simple benchmark for reading Fed expectations and inflation dynamics.
Notable quotes
“My concern is really about the series of legal attacks on the Fed”
“These attacks are battering the institution and putting at risk the thing that really matters to the public”
“They're getting closer but they're not there yet”
“I think Fed independence is at risk”
How the episode opens
When the rest of the markets slow down, the futures market keeps moving. Did you know that CME Group S&P 500 and NASDAQ 100 futures trade nearly 24 hours with great liquidity? In the ETF markets, volume and liquidity lessens after 400 p.m. until the next morning. But with futures, you get trading opportunities both day and night. Learn more at cmegroup.com/equity futures.
Everyone has been there. Your team's feedback is scattered across emails, chats, and sticky notes. It's a mess.
But PDF spaces in Adobe Acrobat gives you one collaborative workspace to streamline every file and comment. So if you need six departments to finally agree on a proposal, do that with Acrobat. Need to turn a mountain of feedback into one plan of action?
Do that with Acrobat. Want to stop searching for files and finally get everyone on the same page? Do that?
Do that. Do that with Acrobat. Learn more at adobe.com/do that withacrobat.
Being a small business owner isn't just a career. It's a calling. Chase for business knows how much heart and effort go into building something of your own.
Manage all your business finances from banking to payments to credit cards all in one place with Chase's digital tools. Plus, access online resources designed to help your business thrive. Learn more at chase.com/business.
Chase for business. Make more of what's yours. The Chase mobile app is available for select mobile devices.
Message and data rates may apply. JP Morgan Chase Bank NA member FDIC. Copyright 2026.
JP Morgan Chase and Company.
Bloomberg Audio Studios, podcasts, radio, news. — This is a breaking news update from Bloomberg. Instant reaction and analysis from our 3,000 journalists and analysts around the world. — In the next 20 minutes on this program, we need to discuss two things.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- fed decision
- jay powell
- federal reserve governance
- monetary policy outlook
- interest rate policy
Watch the episode
Watch “Instant Reaction: Jay Powell on the Fed Decision | Bloomberg Businessweek” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
More from Bloomberg Businessweek Daily
-
Bloomberg Businessweek Weekend - November 13th, 2026 | Bloomberg Businessweek -
Inside Jensen Huang’s Final Hours as Nvidia CEO | Bloomberg Businessweek -
Jensen Huang's Exit Kicks Off Nvidia Strategy Reset | Bloomberg Businessweek -
Special Episode: Bobby Jain on Why He Chose Millennium Again | Bloomberg Businessweek -
Bloomberg Businessweek Daily Podcast: Jensen’s Nvidia Departure -
Take-Two Releasing Long-Awaited Grand Theft Auto VI Next Week | Bloomberg Businessweek
Bloomberg Businessweek Daily, this episode and its artwork belong to Bloomberg. Octagon is not affiliated with the show; this page is an independent summary.
