The Justice Department’s investigation into Powell could backfire on Trump and keep the Fed chief in office

WASHINGTON (AP) — President Donald Trump has wanted for months to remove Jerome Powell as Federal Reserve chairman. Instead, an investigation by one of his officials could extend Powell’s term at the helm of the central bank even after his term officially ends on May 15.

He watches: Fed Chairman Powell holds a press conference after leaving interest rates unchanged

Trump nominated former Federal Reserve official Kevin Warsh to succeed Powell. However, Warsh’s confirmation was delayed due to a Justice Department investigation into brief comments Powell made to the Senate Banking Committee last June regarding the renovation of the Federal Reserve building. Sen. Thom Tillis, a Republican from North Carolina, said he would not vote to confirm any Fed nominee until the investigation is dropped.

With all Democrats on the committee also opposed to moving forward, Tillis’ position effectively prevented the committee from advancing Warsh’s nomination.

Powell said on Wednesday that he would remain chairman of the Fed’s rate-setting committee after his term ends if a successor is not confirmed. He said he could stay longer if the investigation continues.

“I have no intention of leaving the Council until the investigation is well and truly concluded, transparently and conclusively,” Powell told reporters.

In addition to his term as chairman, Powell is a member of the Fed’s seven-person Board of Governors until January 2028. Presidents typically step down from the board completely when they are no longer chairman, but Powell could remain on the board and deny Trump the opportunity to take another seat.

Powell on Wednesday declined to say whether he would step down even after the investigation ends.

He added: “I have not made this decision yet.” “I will make this decision based on what I believe is best for the organization and the people we serve.”

It’s an ironic turn of events given Trump’s well-documented anger toward Powell, and reflects the success the Fed has had in protecting its independence through the courts and in Congress.

Separately, the John F. Kennedy Library Foundation said Thursday that it will present the John F. Kennedy Award in Courage to Powell on May 31.

Powell received the award for “protecting the independence of the Federal Reserve… despite years of personal attacks and threats from the highest levels of government.”

The foundation said that by resisting pressure, Powell succeeded in “protecting one of the country’s most important non-political institutions.”

Last week, the Justice Department’s investigation into Powell was severely hampered last week when a federal court overturned two subpoenas issued by Jeanine Pirro, the U.S. attorney for the District of Columbia, that requested information from the Federal Reserve about the building’s $2.5 billion renovation.

“There is ample evidence that the primary (if not sole) purpose of the subpoenas was to harass Powell and pressure him either to submit to the President or to resign and make way for the Fed Chairman who would do so,” U.S. District Judge James Bosberg wrote.

Perot said last week that she would appeal the decision and that she was not concerned about any delay it might cause in Warsh’s ability to take over from Powell.

“I don’t even know who he is,” Pirro said of Wershe. “Politics is not the path I live in now. We are focusing on the law.”