Federal Reserve Chairman Powell Stays Amid Investigation
Jerome Powell, the Chairman of the Federal Reserve, announced that he will remain at the central bank while the Justice Department investigates claims related to his testimony. “I will not resign until the investigation is fully resolved with transparency and finality,” he stated.
Powell indicated that, should a replacement not be identified by the end of his term, he would stay on as interim chairman until one is found. “That’s what the law requires,” he pointed out, noting he has managed similar situations before.
The investigation stems from his testimony to Congress in June 2025 regarding renovations to two historic buildings on the National Mall, which have raised concerns among Republicans and the Trump administration.
In a notable move, Powell called the investigation “unprecedented” and suggested it was part of a broader effort by the president to sway central banks regarding interest rate policies. This public reaction marked a significant shift in tone from a chairman typically known for his caution.
During his earlier testimony before the Senate Banking Committee, Powell firmly disputed allegations that renovations included luxury features. He clarified, “There’s no new marble. There’s no special elevator. It’s an old elevator. There’s no new plumbing. No beehive or rooftop garden terrace.” He elaborated that the delays and costs associated with the renovations were due to unforeseen construction issues and inflationary pressures.
The renovation cost is projected to be around $2.5 billion, funded by the central banks instead of taxpayer dollars. The Fed is self-funded and does not depend on Congress for its operational expenses.
Powell, initially nominated by Trump in 2017, is set to finish his term at the end of May. There’s speculation about Kevin Warsh being nominated as his potential successor, although that nomination is currently on hold due to an announcement from Senator Thom Tillis to obstruct any Fed nominations related to the ongoing investigation.
