Powell vows to stay at Fed until probe ends, may remain chair pro tem

2026-03-18 - 22:29

Federal Reserve Chair Jerome Powell declared Wednesday he has no plans to resign from the Fed Board of Governors until the conclusion of an ongoing criminal investigation into his conduct, pushing back against speculation about his future. The announcement came as Powell also addressed questions about leadership transition at the central bank. Investigation defiance "I have no intention of leaving the board until the investigation is well and truly over with transparency and finality," Powell told reporters in Washington, specifically addressing his tenure beyond his chairmanship, which expires in May. Federal prosecutors in Washington opened a criminal investigation last year concerning renovations at the Fed's headquarters and allegations Powell may have misled Congress about the project's scope and cost. Powell has denied the allegations and characterized the probe as politically motivated. Succession contingency Following the Fed's decision Wednesday to maintain steady interest rates, Powell also addressed the transition timeline. President Donald Trump announced in January he has selected Kevin Warsh, a former Federal Reserve Board governor, as his nominee for the next Fed chair. Powell indicated he would remain as chair pro tem if Warsh is not confirmed by the time his own term concludes in May, ensuring continuity at the helm of the central bank. Trump pressure continues Powell's tenure has been marked by sustained pressure from Trump, who has repeatedly demanded lower interest rates and attacked the Fed chair and other officials for not complying. The ongoing investigation adds another layer of complexity to Powell's position, though his defiant stance suggests he intends to fight the probe while maintaining his duties. The combination of criminal investigation, presidential pressure and leadership transition creates an unusually volatile period for the institution responsible for US monetary policy.