Fed chair Jerome Powell says he will stay on as Govenor after term amid legal pressure
During a press conference following the Fed’s interest rate decision, Powell said ongoing scrutiny and political tension forced him to stay, despite his plans to step down.
What to know:
- Jerome Powell said he will remain on the Federal Reserve Board as a governor after his term as chair ends in May, despite his desire to keep a low profile.
- Powell said he is staying in part because he fears legal and political attacks are undermining the Fed’s independence and its ability to conduct monetary policy free of political influence.
- Although the Trump administration suspended its criminal investigation into Powell, officials left open the possibility of reopening the case, contributing to concerns that he could still face legal pressure.
“I worry that these attacks are battering the institution and putting at risk the thing that really matters to the public, which is the ability to conduct monetary policy without taking into consideration political factors,” Powell said.
When the administration of President Donald Trump closed its criminal investigation into Powell, it left room to revisit the case. Jeanine Pirro, the U.S. attorney for the District of Columbia, said the matter would stay under review by the Fed’s inspector general and warned prosecutors could reopen it if new facts emerged.
That statement, along with later remarks from President Donald Trump and his aides, raised concern that Powell could still face legal pressure. Powell said even though he wanted to leave, he had “no choice” but to stay.
