Jerome Powell to stay on Fed board after central bank holds rates steady in defiance of Trump

Jerome Powell, the Fed chair, talks to reporters after a meeting of the federal open market committee in Washington last month. Photograph: Kevin Lamarque/Reuters

The US Federal Reserve chair, Jerome Powell, will remain on the central bank’s rate-setting board after his term as chair ends in May, a contentious move that signals continued uncertainty at the Fed.

Powell made the announcement after the Fed board on Wednesday left interest rates unchanged for the third time this year, despite Donald Trump’s continued demands for rate cuts.