Former New York Fed President Dudley: The Federal Reserve has suffered ruthless attacks, supporting Powell to remain as director.

Former New York Fed President Dudley said that Powell's decision to continue serving as a Fed Governor after stepping down as Fed Chair will help to appease Wall Street and the public as President Trump pressures for rate cuts. "The Fed has been under relentless attack from the President, and its independence has been questioned," Dudley said. "Powell believes that his continued presence at the Fed will actually enhance the perception of the Fed's independence. I think it is wise for him to stay on if he is willing." Powell's term as a Fed Governor expires in 2028, and his choice to remain on the Board after stepping down as Chair on May 15 is uncommon in Fed history. Quarles, appointed by Trump, has offered reasons for supporting the President's desired rate cuts. However, traders are no longer betting on any rate cuts this year, and Dudley also said that the rationale for monetary easing is "very weak."