Honestly, if you’ve spent any time on social media or watching financial news lately, you’ve probably seen the headlines. There’s a lot of noise. Rumors are flying faster than a tech stock in a bull market. People keep asking the same question: did Jerome Powell resign?
The short answer is no. As of mid-January 2026, Jerome Powell is still the Chair of the Federal Reserve.
But the "no" comes with a whole lot of "buts." We are currently living through one of the most tense standoffs between a U.S. President and a Fed Chair in American history. It’s messy, it’s loud, and it’s making the markets incredibly twitchy.
The Current Drama: Why Everyone Thinks He Quit
You might have seen reports about a Department of Justice investigation. That’s real. Just a few days ago, on January 11, 2026, the DOJ opened a probe into Powell. They are looking into his Senate testimony regarding the massive $2.5 billion renovation of the Fed’s headquarters. Critics, led by folks like Bill Pulte, have called it the "Palace of Versailles" and used the costs as a reason to demand Powell’s head.
Powell isn't taking it lying down. In a video statement he released on Sunday night, January 11, he called the investigation a "futile pressure tactic." He basically said the White House is using the DOJ to bully him into lowering interest rates. It was a stunning moment. You don't usually see a central banker go on the offensive like that.
Did Jerome Powell Resign Under Pressure?
Despite the calls for him to step down, Powell has been incredibly firm. He’s said—flat out—that he will not leave before his term ends.
His current term as Fed Chair doesn't officially expire until May 15, 2026.
President Trump has been very vocal about wanting him gone. He’s called him "stiff" and "political." There was even a moment last summer when Trump told advisors he wanted to fire him. But firing a Fed Chair isn't like firing a cabinet member. By law, a president can only remove a Fed governor "for cause." Disagreeing over interest rates? Not "cause." That’s why we’re seeing this legal chess match over renovation costs.
- The 2026 May Deadline: This is the big one. This is when his four-year term as Chair ends.
- The 2028 Board Deadline: Here’s a weird quirk. Even if he stops being Chair in May 2026, his term as a Governor on the Fed board doesn't end until January 31, 2028.
- The Resignation Tradition: Usually, when a Chair’s leadership term ends, they leave the board entirely. They don't want to be a "backseat driver" for the next person. But will Powell do that? He hasn't said.
What Happens When the Clock Runs Out?
If Powell stays until May, who takes over? The rumors are already thick.
The White House is reportedly looking at names like Kevin Hassett and Kevin Warsh. Hassett is an insider who has been very loyal to the administration’s economic views. Warsh is a former Fed governor who has been a critic of the central bank’s recent moves.
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Markets are already trying to price this in. If a "super-dove" (someone who wants very low rates) is appointed, gold might keep surging. If the transition is chaotic, we might see the Treasury curve get really weird.
Why This Matters to Your Wallet
This isn't just about two powerful men in Washington having a spat. The independence of the Federal Reserve is what keeps the dollar stable. If people think the Fed is just doing whatever the President says, they lose trust in the currency.
When the Fed is independent, they can make the "tough" choices—like keeping rates high to fight inflation even when it's unpopular. If Powell were to resign suddenly, or be forced out, it would signal a massive shift in how the U.S. economy is managed.
Right now, Powell’s goal is simple: he wants to hand over the keys with the economy in "really good shape." He wants 2% inflation and a strong labor market. He’s basically trying to finish his shift while the building is on fire.
What You Should Actually Watch For
If you're trying to figure out if a resignation is coming, stop looking at the angry tweets. Watch the court cases.
There is a case right now, Trump v. Cook, headed to the Supreme Court. It’s about the President’s power to fire Fed governors. If the court rules that the President can fire them at will, Powell’s days are likely numbered. If they uphold the current "for cause" protections, he’ll probably make it to May.
Actionable Next Steps:
- Monitor the May 15, 2026 Date: This is the most likely time for a leadership change. Don't expect a resignation before then unless a legal bombshell drops.
- Watch the Supreme Court: The Trump v. Cook ruling will be the real indicator of the Fed's future. It’s the most important economic news nobody is talking about.
- Diversify for Volatility: Central bank uncertainty usually leads to swings in gold, silver, and the 2-year Treasury yield. If you have a portfolio, check your exposure to interest-rate-sensitive assets.
- Ignore the "Shadow Chair" Talk: There’s been talk of a "shadow chair" being appointed to undermine Powell. While it makes for great headlines, the FOMC still votes as a group. Powell still has the gavel for now.
The situation is changing by the day, but as of this second, the chair is occupied. Powell is staying put, even with the DOJ at his doorstep.