Fed Chair Jerome Powell Says He Has “No Intention” of Resigning Until Trump Investigation is Finished

At a press conference on Wednesday, Federal Reserve Chair Jerome Powell stated that he has “no intention” of stepping down from his position until the federal investigation into him launched by the Trump administration has finished.

Powell’s term as Fed chair is scheduled to end on May 15, 2026, and President Donald Trump has nominated former Fed Governor Kevin Warsh to succeed him. But Powell signaled he does not plan to step aside before the investigation is finished.

Powell told reporters he had “no intention” of leaving the Fed “until the investigation is well and truly over with transparency and finality.” Days earlier, Reuters reported that Powell’s attorneys had raised the possibility that he could remain on the Fed’s Board of Governors after his term as chair expires, an unusual step that would break with modern precedent.

However, the Fed Chair remained tight-lipped on whether or not he would stay after the probe was wrapped up, telling reporters, “On the question of whether I will then continue to serve as a governor after my term ends and after the investigation is over, I have not made that decision yet.”

While Powell’s chairmanship expires in May, his term as a member of the Board of Governors runs until January 2028. Traditionally, Fed chairs leave the board when a successor takes over, but Powell’s possible decision to remain would preserve his vote on the seven-member board and could limit Trump’s ability to reshape the central bank more quickly. Reuters also reported that concerns over Fed independence, along with the added impact of giving the president another appointment, have fueled speculation that Powell might stay.

While meeting with Japanese Prime Minister Sanae Takaichi, Trump was asked about his thoughts on Powell staying on as Fed Chair, to which he responded, “Well, he’s under investigation for building a building for hundreds of billions of dollars more than it’s supposed to cost,” adding that he is a “stubborn and incompetent,” as well as “not a smart guy.”

The backdrop is a Justice Department investigation into Powell’s testimony to Congress about the Federal Reserve’s Washington headquarters renovation. In January, the Department of Justice served grand jury subpoenas to the Federal Reserve, threatening a criminal indictment in connection with Powell’s testimony before the Senate Banking Committee in June 2025. That testimony involved details about a multi-year renovation of historic Federal Reserve office buildings in Washington, D.C., including costs and oversight of the project.

Former Fed chairs and former Treasury secretaries from both political parties issued a joint statement condemning the DOJ’s actions as the “reported criminal inquiry into Federal Reserve Chair Jay Powell” and asserting that such prosecutions have no place in the United States, where central bank independence is considered foundational to maintaining price stability and financial credibility.

In a statement issued revealing the investigation, Powell himself stated that “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President. This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation.”

Last week, a federal judge blocked subpoenas that the DOJ had issued to the Fed, but U.S. Attorney Jeannine Pirro said she would appeal. Powell clarified at his news conference that he does not intend to leave while that matter remains active. Reuters, citing unsealed court documents, reported that Powell’s lawyers told Pirro in January that he felt he would not leave the board while still under investigation.

Powell’s comments came the same day the Fed held its benchmark interest rate in the 3.50 percent to 3.75 percent range. In its updated projections, officials signaled one rate cut this year, while also lifting their inflation forecast and acknowledging heightened uncertainty tied to the war with Iran and rising energy prices. Powell said higher energy prices would push up overall inflation in the near term, though it remained too early to know the full economic consequences. He also stressed the central bank would need more evidence that inflation is easing before moving to cut rates again.