Powell's Showdown with Justice Department: If Investigated, Chair Will Remain as Governor After Term Ends

Gate News: On March 16, last Friday, declassified documents revealed that Federal Reserve Chair Jerome Powell’s lawyer stated during a meeting with the Department of Justice on January 29 that Powell might continue to serve as a Federal Reserve Board member after his term as Chair ends in May, which would be a groundbreaking decision.

These documents are related to the Federal Reserve’s efforts to prevent the Department of Justice from issuing a subpoena for a criminal investigation into Powell’s handling of the renovation of the central bank’s Washington headquarters. Last Friday, a district court judge ruled in favor of the Fed, blocking the subpoenas.

During the debate opposing the Fed’s motion, a Department of Justice lawyer said that Powell’s lawyer told U.S. District Attorney Jeannine Pirro that “the Chair believes that if he is still under investigation, he will not leave the Board even after his term ends; and although he cannot say otherwise, if he is no longer under criminal investigation, his image would be different, and he would be able to make decisions focused on his family.”

Powell’s lawyer also stated that, given the current situation, President Trump, who has been pressuring Powell to cut interest rates, “does not have enough votes in the Senate to confirm a new Board Chair.”

Powell’s term as a Board member will last until January 2028, spanning the upcoming midterm elections in November and covering the final year of the Trump administration.