Jerome Powell reveals plan to stay at Fed after term as chair ends

Federal Reserve Chair Jerome Powell said Wednesday that he plans to stay on at the central bank as a governor after his term as chair ends next month “for a period of time to be determined.”

“I have said that I will not leave the board until this investigation is well and truly over with transparency and finality, and I stand by that,” he said at a press conference Wednesday following the Fed’s decision to hold interest rates steady. “I’m encouraged by recent developments, and I’m watching the remaining steps in this process carefully.”

“My decisions on these matters will continue to be guided entirely by what I believe is in the best interest of the institution and the people we serve,” he added.

The Fed board includes seven members, called governors, three of whom are appointed by the president and confirmed by the Senate as chair, vice chair and vice chair of supervision.

Powell’s term as Fed chair ends in May, but his separate term as a Fed board member lasts until January 2028. He previously said he would stay on until the Department of Justice’s criminal investigation into his handling of Fed renovations was resolved.

Powell said Wednesday that he plans to “keep a low profile” as he remains at the central bank.

“There is only ever one chair of the Federal Reserve Board,” Powell added. “When Kevin Warsh is confirmed and sworn in, he will be that chair.”

U.S. Attorney Jeanine Pirro announced Friday that she was handing over the investigation to the Fed inspector general and closing the DOJ’s probe, while warning that she could reopen the investigation “should the facts warrant doing so.”

Powell said Wednesday that he received assurances from the DOJ that they will not reopen the investigation unless there is a criminal referral from the inspector general and they will not seek to restart the probe if they choose to appeal the court’s decision to block several subpoenas.

Warsh, President Trump’s pick to replace the Fed chair, appears poised to quickly be confirmed by the Senate after advancing out of the Senate Banking Committee on Wednesday along party lines.

The confirmation process was held up in recent weeks, as Sen. Thom Tillis (R-N.C.) vowed to oppose Warsh’s nomination while the investigation into Powell was ongoing. Tillis, who sits on the Senate Banking panel, had the ability to prevent the nomination from moving forward.

However, he agreed to support Warsh after Pirro’s announcement Friday, thanking the DOJ “for the assurances that they gave me.”