Powell to Stay on Fed Board After May 15 Amid DOJ Probe

Federal Reserve Chair Jerome Powell announced at the end of what he called his final press conference as chair that he will remain on the Fed’s seven-member Board of Governors after his four-year chair term expires on May 15. He holds a separate 14-year governor term that runs through January 2028.

The decision is tied to a Justice Department criminal investigation of the Fed’s headquarters renovation that Powell previously referred to the Fed’s inspector general. On April 24 the U.S. Attorney’s Office in the District of Columbia closed the criminal probe and told the Fed it would not reopen the matter without a referral from the inspector general. Powell added he will not leave the Board until the investigation is “well and truly over, with transparency and finality.”

President Trump nominated Kevin Warsh to succeed Powell. The Senate Banking Committee advanced Warsh on a 13-11 party-line vote on April 29, and the full Senate is expected to consider his confirmation the week of May 11. Powell will remain as chair until Warsh is confirmed and sworn in and congratulated Warsh on his nomination, noting there is “only ever one Chair of the Federal Reserve Board.”

By staying on the Board after May 15, Powell will prevent an immediate vacancy among the seven governors, limiting how quickly the White House could change the Board’s composition beyond a confirmed chair.

At its meeting the Federal Open Market Committee kept the federal funds target at 3.5% to 3.75%. Powell highlighted that total personal consumption expenditures prices rose 3.5% over the 12 months ending in March and core PCE, which excludes food and energy, rose 3.2%. The unemployment rate was 4.3% in March. Powell described slowing job growth as reflecting lower labor force participation, reduced immigration and softer labor demand; he added monetary policy is not on a preset course and will be decided meeting by meeting given elevated uncertainty tied to recent events in the Middle East.

Financial markets finished the session mixed after Powell’s announcement. The Nasdaq closed at 24,673.24, the Dow Jones Industrial Average at 48,861.81, the NYSE Composite at 22,751.51 and the S&P 500 at 7,135.95. In crypto markets, bitcoin traded near $75,839 and ethereum around $2,247.

Powell closed his remarks by reaffirming the Fed’s institutional mission. He expressed confidence that the Fed will continue to act with “objectivity, integrity, and a deep commitment to serve the American people.” How long he will remain on the Board beyond Warsh’s confirmation will depend on remaining steps in the inspector general’s review and any further procedural actions.