Federal Reserve Chair Jerome Powell stated Wednesday he has “no intention of leaving” the central bank’s board until a Justice Department investigation into his congressional testimony is resolved, a probe initiated at the behest of former President Donald Trump. The announcement, made during a press conference in Washington, D.C., underscores a yearlong effort by Trump and his allies to oust Powell and install a more favorably aligned successor.
The Justice Department began investigating Powell in January, focusing on questions surrounding a renovation project at the Federal Reserve’s headquarters. This followed repeated public criticisms of Powell’s monetary policy by Trump, who frequently called for lower interest rates. A federal judge, James Boasberg, subsequently blocked subpoenas issued to Powell and the Federal Reserve, finding “abundant evidence” that the subpoenas were intended to “harass and pressure” Powell, according to court filings.
Powell’s current term as chair ends in May, but his term as a governor on the Fed’s board extends until 2028. He indicated Wednesday he could remain on the board even after a novel chair, economist Kevin Warsh, is confirmed by the Senate. “I will make that decision based on what I think is best for the institution and for the people we serve,” Powell told reporters. He also stated he would serve as chair pro tempore if Warsh’s confirmation process stalls. As of Wednesday, Warsh’s Senate confirmation had not progressed beyond initial meetings.
The investigation stems from Trump’s dissatisfaction with Powell’s handling of interest rates, which the former president believed were hindering economic growth. Trump publicly attacked Powell on numerous occasions, using derogatory language and even suggesting a lawsuit against the Fed chair. The judge’s decision to quash the subpoenas cited over a year’s worth of Trump’s statements, including posts on his social media platform, as evidence of a politically motivated investigation.
Powell’s decision to remain at the Fed until the investigation concludes effectively challenges Trump’s attempts to exert influence over the central bank. The outcome of the Justice Department probe remains uncertain, and its resolution could have significant implications for the future leadership of the Federal Reserve.
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