Federal Reserve Chair Jerome Powell announced Wednesday he will remain on the Fed’s Board of Governors after his term as chair ends May 15, citing what he called “unprecedented” legal attacks on the central bank’s independence by the Trump administration.
“My concern is really about the series of legal attacks which threaten our ability to conduct monetary policy without considering political factors,” Powell said at what is his final press conference as chair. “These legal actions by the administration are unprecedented in our 113-year history, and there are ongoing threats of additional such actions.”
The U.S. Attorney for the District of Columbia, Jeanine Pirro, closed a criminal investigation into Powell on Friday about the Fed’s headquarters renovation, but said she would “not hesitate” to restart it. Powell said the Justice Department had since provided assurances it would not reopen the investigation or issue new subpoenas, but said he was “watching the remaining steps in this process carefully.”
Powell did not specify how long he would stay, saying only that he would remain until “this investigation is well and truly over, with transparency and finality.” He can technically remain a governor until January 2028. The decision blocks President Donald Trump from filling Powell’s board seat with a more dovish nominee.
Powell’s announcement followed the Fed’s decision Wednesday to hold the federal funds rate steady in a range of 3.5% to 3.75% for a third consecutive meeting, with four officials dissenting. Hours earlier, the Senate Banking Committee voted 13-11 along party lines to advance Kevin Warsh, Trump’s nominee, to a full Senate confirmation vote.
Powell pushed back on the idea that staying on the board was political.
“I’m literally staying because of the actions that have been taken. I had long planned to be retiring,” Powell said. He cleared his throat.
“And the things that have happened in the last three months, they have left me no choice but to stay until I see them through, at least that long,” he continued.
He also said he plans to “keep a low profile” as a governor and will not act as a shadow Fed chair.
“The tradition is at the Fed that governors understand how difficult the role of chair is,” he said. “You try to be heard, but also collaborate with the chair and support the chair when you can.”
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