Fed Chair Powell's Term Ending: Uncertainty Remains on Continued Tenure

On April 25, Federal Reserve Chair Jerome Powell may be in the final weeks of his central bank leadership career. Following a decision by the Justice Department on Friday, he now faces a choice: whether to continue serving at the institution. U.S. Attorney Jenny Pirro announced on social media that she would be referring the criminal investigation into the renovations at the Federal Reserve headquarters to the bank’s internal inspector general, effectively temporarily withdrawing the Justice Department from the investigation. Krishna Guha, head of global policy and central bank strategy at Evercore ISI, stated in a report: “Powell has been tight-lipped. If this investigation had not occurred, we believe he would have completely left the Fed by May 15. However, we think the Justice Department’s actions may have come too late—and the threat of the investigation being reopened is too uncertain—for Powell to leave on May 15.” Guha speculated that, on the contrary, Powell may choose to remain for a while, even if he does not fully complete his term as a governor, which is set to expire in January 2028.