Jerome Powell confirmed this week that he will remain on the Fed’s Board of Governors after his term as chair expires May 15th, breaking sharply with the modern tradition in which outgoing Fed chairs leave the institution entirely.
Powell cited what he called an unprecedented series of legal attacks on the central bank, including a Justice Department criminal probe over the Fed's $2.5 billion headquarters renovation. A federal judge quashed the probe in March, finding the government had produced "essentially zero evidence" of wrongdoing. The DOJ announced on April 24 that it was closing the inquiry, though U.S. Attorney Jeanine Pirro said she would restart the investigation if warranted, and the White House characterized the matter as transferred to the Fed's Inspector General rather than fully resolved.
"These legal actions by the administration are unprecedented in our 113-year history," Powell said, adding that he felt he had "no choice" but to stay until the matter reached a transparent conclusion. He said he would keep a low profile and step aside once Kevin Warsh, whose nomination advanced out of the Senate Banking Committee 13–11 on Wednesday, is confirmed as his successor.
