MW Jerome Powell's final Fed press conference marks an end to an era
By Greg Robb
President Trump's pick for Fed chair, Kevin Warsh, may cancel the regular Q&A with reporters
Jerome Powell will likely hold his last official press conference as Federal Reserve chair on Wednesday. Likely successor Kevin Warsh may discontinue them entirely.
Jerome Powell will likely hold his last official press conference as chair of the Federal Reserve on Wednesday - potentially bringing down the curtain on regular question-and-answer sessions with reporters from the Fed's top official.
Investors and economy wonks watch such press conferences closely. Proponents of regular media appearances by the Fed chair say they allow the central bank to shape the narrative around its interest-rate moves and can help markets digest the Fed's policies. But some critics - including Kevin Warsh, Trump's nominee to take over as Fed chair - say Fed officials overcommunicate.
Warsh, who is likely to be confirmed before the Fed's next policy meeting in mid-June, has suggested he may stop holding the regular press conferences entirely.
That's why Powell's final turn at the lectern Wednesday is "so momentous," said Julia Coronado, a former top Fed staffer and president of MacroPolicy Perspectives.
"I would expect Powell, either directly or indirectly, to defend transparency and the value of facing the public and journalists and explaining themselves," she added.
Regular press conferences for more than a decade
Fed officials meet every six weeks, or eight times a year, to set interest-rate policy. Former Fed chair Ben Bernanke first started holding press conferences after some of these meetings in 2011, staging them four times a year.
"It used to be [that] the mystique of central banking was all about not letting anyone know what you were doing," Bernanke said at the time.
Powell started holding press conferences after every meeting in 2019, less than a year into his tenure. When he announced the move, Powell said he wanted to give a "plain-English summary of how the economy is doing" because monetary policy affects everyone.
"We think the outcomes are likely to be better overall if we are as clear as possible about what we are likely to do and why," he said. "To that end, we try to give a sense of our expectations for how the economy will evolve and how our policy stance may change."
Over time, Powell became more cautious in his answers to reporters' questions.
"Unscripted responses got more attention than he expected or wanted," said Vincent Reinhardt, chief economist BNY Investments, in an email. "Over time, he stuck closer to his briefing book. The sharp edges were smoothed, reducing points of conflict as well as the information content,"
By 2024, Harvard economics professor Greg Mankiw said that Powell's caution at the lectern made the press conferences a waste of time.
"When the Fed chair answers reporters' questions, he seems to be conveying the least possible information in the most words possible," Mankiw said in a post on his blog, adding: "From the Fed's perspective, the ideal news conference contains no news and is mainly repetition and platitudes."
'One wants to deliver some important news'
In his testimony to the Senate Banking Committee this week, Warsh suggested he might take Mankiw's advice.
"When one has a press conference, one wants to deliver some important news," Warsh said, when asked if he would stick with eight press conferences by Sen. Ruben Gallego, a Democrat from Arizona.
The Fed started to move toward transparency after sharp rate hikes in early 1994 surprised markets and led to the bankruptcy of Orange County, Calif., late that year. It was the largest municipal bankruptcy in U.S. history at the time.
"That's the kind of volatility that adds no value to the economy," Coronado noted, and the Fed decided it was better to "state clearly what you're doing and why."
Despite criticizing the Q&A sessions, it may be hard for Warsh to resist the opportunity to shape the public's understanding of his Fed, according to some experts. Matt Luzzetti, chief U.S. economist at Deutsche Bank, said he doubts Warsh will end the every-meeting presser schedule.
"The press conference provides a powerful and frequent platform for him to put his stamp on the Fed's message and frame the narrative immediately after each policy decision," Luzzetti said in a note to clients. "It would be a missed opportunity to cede this stage."
At its meeting next week, the Fed almost certainly won't make any changes to interest rates. The outlook for the economy remains very uncertain as the war with Iran drags on, and expected rate cuts later this year seem further off as inflation is now spiking.
Reporters will likely press Powell on whether he will stay on the Fed board after his term as chair ends on May 15.
U.S. Attorney Jeanine Pirro announced Friday she will end her criminal investigation into Powell. It is unclear whether the announcement will affect Powell's decision to stay as a Fed governor, said Ian Katz, managing director of Capital Alpha.
Powell could stay on as a governor until his term ends in January 2028.
-Greg Robb
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 25, 2026 07:30 ET (11:30 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments