Federal Reserve Chair Jerome Powell said he will remain on the central bank’s Board of Governors even after his term as chair expires next month.
Powell told reporters on Wednesday that he intends to continue serving as a governor “for a period of time to be determined,” citing the need to see an ongoing investigation into the Federal Reserve’s headquarters renovation project through to completion. His term as chair ends on May 15, while his term as a board member runs through January 31, 2028.
“I’ve said that I will not leave the board until this investigation is well and truly over with transparency and finality, and I stand by that,” Powell said during a press conference following a Federal Open Market Committee meeting, according to remarks reported by CNBC.
The decision follows a recent development in which the Justice Department dropped its criminal probe into Powell over cost overruns tied to the renovation project, according to reporting by The Dallas Express. The inquiry had examined whether Powell’s public statements about the multibillion-dollar project were accurate.
U.S. Attorney Jeanine Pirro announced that her office would close the investigation and refer the matter to the Federal Reserve’s inspector general, while warning that a criminal probe could be reopened if warranted. The renovation’s cost has reportedly increased from about $1.9 billion to roughly $2.5 billion due to factors such as asbestos remediation, soil contamination, and rising labor and material costs.
Powell indicated that recent developments in the case influenced his decision to remain.
“The things that have happened really in the last three months have, I think, left me no choice but to stay until I see them through at least that long,” he said, according to CNBC.
His move keeps him in a position to influence monetary policy even after stepping down as chair, and it temporarily denies President Donald Trump the opportunity to fill a vacancy on the Fed’s seven-member board. Trump has nominated former Fed governor Kevin Warsh to succeed Powell as chair, and Warsh’s nomination has advanced through the Senate Banking Committee.
Powell also addressed criticism from Trump, calling it “unprecedented in our 113-year history” and expressing concern about the central bank’s independence.
“I worry that these attacks are battering the institution and putting at risk the thing that really matters to the public, which is the ability to conduct monetary policies without taking into consideration political factors,” he said, according to CNBC.
Trump has repeatedly criticized Powell, not only for the cost overruns on the construction of the new Federal Reserve building but also for the institution’s failure to more aggressively slash interest rates. “Jerome ‘Too Late’ Powell, and his entire Board, should be ashamed of themselves for allowing this to happen to the United States,” Trump posted on Truth Social last year. “They have one of the easiest, yet most prestigious, jobs in America, and they have FAILED — And continue to do so.”
On the same day Powell made his announcement, the Federal Reserve also noted that the federal funds rate would remain at a range of 3.5% to 3.75%
Fed chairs in recent decades have typically stepped down from the Board of Governors after their term as chair concludes. Powell acknowledged the unusual nature of his decision but said he plans to maintain a limited public role.
“There’s only ever one chair,” he said. “When Kevin Warsh is confirmed and sworn in, he will be that chair.”
The inspector general’s review of the renovation project remains ongoing, leaving open the possibility of further scrutiny even as the criminal investigation has been formally closed, according to statements from Pirro reported by The Dallas Express.
