Federal Reserve Chair Jerome Powell said he will remain on the Fed's Board of Governors even though the U.S. Department of Justice has halted its investigation into him. The statement is seen as reflecting his distrust of the Donald Trump administration and his intention to watch whether the decision to drop the probe holds after Kevin Warsh, the next chair nominee, takes office.
"After my term as chair ends on November 15, I will continue to serve as a governor for the time being," Powell said at a press conference following the Federal Open Market Committee (FOMC) meeting Wednesday. "I plan to carry out my duties as a governor while keeping a low profile." He added, "I have previously stated that I will not leave the board until this investigation is concluded transparently, finally and completely. I view recent developments as encouraging and am closely watching the process going forward."
The Justice Department had been investigating allegations that Powell committed perjury before Congress in June last year regarding cost overruns on the Fed's headquarters renovation. A federal court in Washington, D.C., invalidated a federal prosecutor's grand jury subpoena against Powell on October 11, but prosecutors appealed and did not back down from their investigation. In response, Powell said after the FOMC meeting on October 18 that he would remain at the Fed until the investigation was over. Powell's term as chair ends on November 15, but his term as a governor runs until January 31, 2028.
The Justice Department ultimately announced on October 24 that it was halting the investigation after Republican Senator Thom Tillis, a member of the Senate Banking Committee, maintained his position that he would oppose the confirmation of Warsh until the probe into Powell ended. Because the current Senate Banking Committee consists of 13 Republicans and 11 Democrats, Warsh could not be confirmed if even a single Republican defected. Tillis changed his stance after the Justice Department's announcement, and Warsh's nomination was approved by the Senate Banking Committee the same day.
