Federal Reserve Chair Jerome Powell confirmed Wednesday that he intends to stay on as a member of the central bank's board of governors after his term as chair expires next month, signaling he will not step away until a lingering criminal investigation is fully resolved.
Speaking at a press conference after the Fed's decision to hold interest rates steady, Powell stated, “I have said that I will not leave the board until this investigation is well and truly over with transparency and finality, and I stand by that.” He added that he is “encouraged by recent developments” and is closely monitoring the remaining steps in the probe.
Powell's separate term as a Fed governor runs until January 2028, allowing him to remain on the seven-member board. The investigation, launched by the Department of Justice, focused on his handling of renovations at the central bank. Last week, U.S. Attorney Jeanine Pirro announced she was closing the DOJ probe and handing it over to the Fed's inspector general, but warned the case could be reopened “should the facts warrant doing so.”
Powell said he received assurances from the DOJ that they will not restart the investigation unless the inspector general makes a criminal referral, and they will not seek to reopen it if they appeal a court decision blocking several subpoenas. “My decisions on these matters will continue to be guided entirely by what I believe is in the best interest of the institution and the people we serve,” he added.
President Trump's nominee to replace Powell, Kevin Warsh, is now on track for swift Senate confirmation after advancing out of the Senate Banking Committee along party lines Wednesday. The nomination had been stalled by Senator Thom Tillis (R-N.C.), who objected while the Powell investigation was active. Tillis dropped his opposition after Pirro's announcement, thanking the DOJ for “the assurances that they gave me.”
Powell acknowledged the transition, saying he plans to “keep a low profile” as a governor. “There is only ever one chair of the Federal Reserve Board,” he noted. “When Kevin Warsh is confirmed and sworn in, he will be that chair.”
The shift comes as the Fed navigates a complex economic landscape. The central bank's decision to hold rates steady reflects ongoing concerns about inflation and growth. Warsh, if confirmed, will inherit a divided board and a challenging policy environment.
Political observers are watching closely, as Powell's extended presence on the board could create tensions with the new chair. However, Powell's vow to stay until the probe is fully resolved suggests he sees his role as a safeguard for institutional integrity.
