Chair had said he’d leave after inquiry into building renovations but now says there are ‘remaining steps in the process’ he’s watching

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The US Federal Reserve chair, Jerome Powell, is staying 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 left interest rates unchanged for the third time this year on Wednesday, despite Donald Trump’s continued demands for interest rate cuts.

Former Wall Street banker faces questions at confirmation hearing – but his biggest backer is also his biggest liability

On the face of it, Kevin Warsh looks like an ideal candidate to chair the Federal Reserve, the world’s most important central bank. The 56-year-old Ivy League economist, former Wall Street banker and presidential adviser ticks all the boxes. Unfortunately for Warsh, as he faces what could be a fraught nomination hearing, his biggest backer is also his biggest liability.

In his second term, Donald Trump has attacked the Fed in a manner both unprecedented and unseemly. He has called current chair Jerome Powell – whom he also appointed – a “jerk”, “a stubborn MORON”, and repeatedly threatened to fire him.