Federal Reserve Chair Jerome Powell said Wednesday he would remain in his role beyond the May 15 expiration of his term if a successor has not yet been confirmed.
The move, Powell stated, would ensure continuity at the central bank amid political and legal tensions. “That is what the law calls for,” he added at a press conference following the Fed’s decision to hold interest rates steady. “That’s what we’ve done on several occasions, including involving me.”
Powell also confirmed he intends to stay on the Federal Reserve Board while a Department of Justice investigation into him continues. “I have no intention of leaving the board until the investigation is well and truly over, with transparency and finality,” he said.
The ongoing probe has become a flashpoint in Washington. Last week, U.S. District Judge James Boasberg struck down subpoenas issued to the Fed, ruling they were designed to pressure Powell. However, the lead prosecutor indicated she would appeal the decision.
The investigation has complicated the confirmation of Powell’s potential successor, with Sen. Thom Tillis, R-N.C., threatening to block President Donald Trump’s nominee, Kevin Warsh—a former Fed governor—until the matter is resolved.
Powell’s stance adds a new layer to his long-running tensions with Trump, who has repeatedly criticized him over interest rate policy, arguing that rates have been kept too high and hindered economic growth.
Trump has sought greater influence over the Fed and is attempting to reshape its leadership through new appointments.
If Powell remains on the board after stepping down as chair, it would limit Trump’s ability to install another appointee, preserving Powell’s influence at the central bank.
Powell, whose term as a Fed governor runs through 2028, said he has not yet decided whether he would stay on after a successor is confirmed. “I will make that decision based on what I think is best for the institution and for the people we serve,” he stated.
