WASHINGTON— Federal Reserve Chair Jerome Powell said Wednesday he will remain on the Federal Reserve Board after his term as chair ends May 15, signaling he is not yet ready to fully exit the central bank as questions linger over whether a recently dropped Justice Department probe is truly finished.
Speaking after the Fed left interest rates unchanged, Powell said he plans to stay on as a governor—where his term runs until January 2028—even as former Fed Governor Kevin Warsh moves closer to succeeding him as chair. Reuters reported Powell said he expects to keep a low profile in the role, while The Wall Street Journal said he tied the decision in part to wanting assurance the investigation is “well and truly over.”
The Justice Department said last week it was dropping its criminal investigation into Powell over testimony tied to the Fed’s Washington headquarters renovation project, a move that removed a key obstacle to Warsh’s confirmation after Sen. Thom Tillis had objected to the probe. But Reuters reported the matter has effectively shifted, not fully disappeared: U.S. Attorney Jeanine Pirro referred the issue to the Fed’s inspector general, who is already reviewing the project, and officials left open the possibility of renewed action if new evidence emerges.
Powell’s decision means President Trump will not immediately gain another opening on the seven-member Board of Governors, preserving one more layer of continuity at the central bank during a politically charged leadership transition. The Senate Banking Committee on Wednesday advanced Warsh’s nomination on a party-line vote, with a full Senate vote expected as soon as the week of May 11.