Powell Signals He Will Remain at Fed Until DOJ Investigation Concludes
Federal Reserve Chair Jerome Powell has indicated he intends to remain in his position until a Department of Justice investigation into his conduct is resolved, potentially complicating the nomination process for his successor. The news comes as President Donald Trump continues to publicly express support for the investigation, further clouding the future leadership of the central bank.
The DOJ probe centers on comments Powell made before the Senate Banking Committee last June regarding renovations to the Federal Reserve’s headquarters and another building in Washington. U.S. Attorney for the District of Columbia Jeanine Pirro is leading the investigation, and has vowed to appeal a federal judge’s ruling blocking grand jury subpoenas related to the probe, according to reports.
President Trump has repeatedly criticized Powell’s monetary policy, calling for lower interest rates and questioning the cost of the Fed’s building projects. “He’s under investigation because he’s building a building for hundreds of billions of dollars more than it’s supposed to cost,” Trump said in the Oval Office on Thursday, March 19, 2026. He claimed the renovations could cost up to $4 billion, though the actual total is approximately $2.5 billion.
The situation is further complicated by the nomination of Kevin Warsh to succeed Powell. Senator Thom Tillis, R-N.C., has stated he will block Warsh’s confirmation until the DOJ investigation is dropped. With unanimous opposition from Democrats on the committee, Tillis’ stance effectively halts the nomination process, as reported by the Associated Press.
Powell addressed the matter on Wednesday, March 18, 2026, stating, “I have no intention of leaving the board until the investigation is well and truly over, with transparency and finality.” Reuters reported that Powell also indicated he could remain as chair of the Fed’s interest rate-setting committee even after his term formally ends on May 15.
The ongoing investigation and the resulting political maneuvering create uncertainty around the Federal Reserve’s leadership and could influence monetary policy decisions. CNBC notes that Trump’s continued support for the investigation adds another layer of complexity to the situation.
