Federal Reserve Chair May Stay Longer Due to Trump Administration Investigation

A Justice Department probe into Federal Reserve Chair Jerome Powell's comments could ironically help him remain in his position longer, despite President Trump's desire to replace him. The investigation has stalled confirmation of Trump's nominee Kevin Warsh, and Powell says he'll stay until the probe concludes.

WASHINGTON — An ongoing Justice Department probe may inadvertently allow Federal Reserve Chair Jerome Powell to extend his tenure beyond his official term ending May 15, despite President Donald Trump’s months-long effort to oust him from the position.

Trump has selected former Fed official Kevin Warsh as Powell’s replacement, but Warsh’s Senate confirmation has stalled due to a DOJ inquiry examining Powell’s brief remarks to the Senate Banking Committee last June regarding the Federal Reserve’s building renovation project.

Republican Senator Thom Tillis of North Carolina has declared he will not support any Fed appointments until the investigation concludes. Combined with Democratic opposition on the committee, Tillis’s position has effectively prevented Warsh’s nomination from moving forward.

During a Wednesday press conference, Powell announced his intention to continue leading the Fed’s interest rate-setting panel beyond his term’s expiration if no replacement receives confirmation. He indicated he might extend his service even further while the investigation remains active.

“I have no intention of leaving the board until the investigation is well and truly over, with transparency and finality,” Powell stated to reporters.

While Powell’s chairmanship expires, his membership on the Fed’s seven-member governing board continues through January 2028. Unlike typical practice where departing chairs leave the board entirely, Powell could maintain his board position, preventing Trump from appointing another member to fill the seat.

When asked Wednesday whether he would resign after the investigation’s completion, Powell remained noncommittal.

“I have not made that decision yet,” he explained. “I will make that decision based on what I think is best for the institution and the people we serve.”

The situation presents an unexpected development considering Trump’s public criticism of Powell, while demonstrating the Federal Reserve’s success in defending its autonomy through legal and congressional channels.

The DOJ investigation suffered a significant setback recently when a federal judge dismissed two subpoenas issued by U.S. Attorney for the District of Columbia Jeannine Pirro, which sought Fed documents related to its $2.5 billion building renovation.

U.S. District Judge James Boasberg determined that the subpoenas were primarily intended “to harass and pressure Powell either to yield to the President or to resign and make way for a Fed Chair who will.”

Pirro announced plans to appeal the ruling last week, expressing indifference about any resulting delays in Warsh’s potential appointment.

“I don’t even know who he is,” Pirro commented about Warsh. “Politics is not the lane I’m in right now. … We are focused on the law.”