WASHINGTON— Federal Reserve Chair Jerome Powell said Wednesday he plans to remain on the Federal Reserve Board if the U.S. Department of Justice investigation into him is still unresolved when his term as chair expires in May, signaling he may continue to influence monetary policy even after stepping down from the Fed’s top post.
Powell said he has “no intention of leaving the board until the investigation is well and truly over, with transparency and finality,” according to Law360 and Associated Press coverage.
Powell’s comments are significant because while his four-year term as chair ends this spring, his separate term as a Fed governor runs until January 2028. Bloomberg reported it is the clearest indication yet that Powell may break with the modern norm of leaving the central bank entirely when a chairmanship ends. Powell also said that if a successor is not confirmed by the Senate before his chair term expires, he would remain as chair on an interim basis until a replacement is confirmed.
The DOJ probe centers on cost overruns tied to the Federal Reserve’s Washington headquarters renovation project. AP reported the Fed held rates steady Wednesday while Powell separately vowed to stay until the investigation is finished, underscoring how the legal cloud is now colliding with the central bank’s leadership transition. Earlier reporting has indicated a federal judge recently quashed subpoenas tied to the investigation, though prosecutors are expected to keep pressing the matter.
The standoff also has direct implications for the White House’s succession plans. President Trump has nominated former Fed governor Kevin Warsh to succeed Powell, but North Carolina Sen. Thom Tillis has said he will not support any Fed nominee while the Powell investigation remains active, creating a potential confirmation bottleneck. That raises the possibility that Powell could remain not only on the Board, but temporarily in the chair’s seat if the Senate process drags beyond May.