Powell says he won't leave the Federal Reserve until the investigation is complete and will serve as "acting chair" until Wash is confirmed.

Topic: The Federal Reserve Announces Interest Rates Remain Unchanged; Financial Institutions Expect Only One Rate Cut This Year

Federal Reserve Chairman Powell stated that he plans to stay at the central bank until the U.S. Department of Justice’s investigation is completed.

“Until the investigation is thoroughly and genuinely concluded, the process is open and transparent, and a conclusion is reached, I do not intend to leave the Board,” Powell said at a press conference on Wednesday.

This is the first time Powell has publicly stated his intention to continue serving as a Federal Reserve Governor, a position that does not end until 2028. In recent months, with the Trump administration investigating the Federal Reserve, rumors about his continued presence on the Board have been rampant. He also indicated that he has not decided whether to continue serving as a Governor until his term ends after the Department of Justice’s investigation.

He said, “I will make my decision based on what I believe is most beneficial for this institution and the people we serve.”

In January, the U.S. Department of Justice issued a subpoena to the Federal Reserve during its investigation into cost overruns on the renovation project of the Federal Reserve headquarters. At that time, Powell stated that the reason for the investigation was merely an excuse, and the real cause was the Federal Reserve’s refusal to comply with President Trump’s requests when setting interest rates.

Earlier this month, a federal judge blocked the enforcement of the subpoena, but the Justice Department indicated it would appeal.

Court documents released alongside the ruling show that Powell believes he must remain on the Board until at least the legal proceedings are concluded. Federal Reserve lawyers stated that Powell’s private attorney “clearly indicated that to defend the independence of the central bank, Chairman Powell cannot resign during the criminal investigation.”

Trump has long pressured Powell and the Federal Reserve to significantly lower interest rates. He has now nominated former Federal Reserve Governor Kevin Warsh to replace Powell. However, some Republican senators opposed to the investigation have obstructed this process. Key Republican Thom Tillis from North Carolina stated that he would not vote to advance Warsh’s nomination until the investigation is thoroughly resolved.

Powell also stated on Wednesday that if Warsh’s confirmation is delayed, he will serve as interim chairman. When Powell’s own second term was up for a vote in 2022, the Board had also appointed him as “acting.” However, at that time, his reappointment was virtually assured, so this arrangement did not raise concerns.

“If my successor is not confirmed before my term as chairman ends, I will serve as interim chairman until he is confirmed,” he said. “That’s what the law states.”

As a Federal Reserve Governor, Powell is also qualified to continue leading the Federal Open Market Committee that determines interest rates, thereby potentially extending his influence over monetary policy.

On Wednesday, the Federal Reserve maintained the benchmark policy interest rate in the range of 3.5% to 3.75% for the second consecutive time, with decision-makers pointing out economic risks related to the conflict in the Middle East.

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Editor: Li Tong