Jerome Powell blasts Trump for unprecedented attacks as he clings to his seat, and Washington is left reeling as a result

Federal Reserve Chair Jerome Powell announced that he intends to remain on the Board of Governors for an indefinite period of time as the ongoing investigation into the renovation of the central bank headquarters continues to unfold, CNBC reported. This decision provides a significant update to the leadership landscape in Washington, effectively delaying a transition that many had been watching closely.

Powell shared his intentions during his post-meeting news conference, emphasizing his commitment to the institution. “I’ve said that I will not leave the board until this investigation is well and truly over with transparency and finality, and I stand by that. I’m encouraged by recent developments, and I’m watching the remaining steps in this process carefully,” Powell said.

By choosing to stay, Powell is currently denying a majority on the seven-member Board of Governors to the administration. The board currently includes Christopher Waller and Michelle Bowman, both of whom were appointed by the President. Meanwhile, Stephen Miran, another appointee whose term has technically expired, has been continuing to serve in his role. However, it’s expected that Miran will step down once Kevin Warsh is officially confirmed as the new chair.

The timing of this announcement is notable because it addresses a major question that had been hanging over the Federal Open Market Committee meeting

Most market observers had already anticipated that the key interest rate would remain steady, so the real drama was centered on what Powell would do next. Powell’s tenure as chair is set to conclude on May 15, but he still has two years remaining on his seat as a governor. He made it clear that his future actions will be handled with the institution’s best interests in mind.

“My decisions on these matters will continue to be guided entirely by what I believe is in the best interest of the institution and the people we serve after my term as chair ends on May 15, and will continue to serve as a governor for a period of time to be determined,” he explained.

Regarding his successor, Powell offered his congratulations to Kevin Warsh. The nomination for Warsh saw a major step forward, as the Senate Banking Committee voted to move his nomination to the full floor for a final vote. Powell seems intent on stepping back from the spotlight once the transition is complete. “I plan to keep a low profile as a governor,” Powell said. “There’s only ever one chair. … When Kevin Warsh is confirmed and sworn in, he will be that chair.”

Beyond the administrative shifts, Powell took the opportunity to address the intense and often personal criticism he has received from the President, who actually appointed him to the position during his first term. Powell noted that this level of criticism is truly something new for the central bank. He described the situation as “unprecedented in our 113-year history” and expressed genuine concern about how these public attacks might affect the long-term stability and reputation of the Federal Reserve.

“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 policies without taking into consideration political factors,” he said. “It is so important for our economy, for the people that we serve, that they can depend, over time, on a central bank that operates that way, free of political influence.”

The tension surrounding the institution is largely tied to the Justice Department’s investigation into building renovations. U.S. Attorney Jeanine Pirro had previously subpoenaed Powell, though a court eventually threw out that effort. While Pirro has promised to appeal that decision, she recently referred the investigation to the Fed’s inspector general.

This move has effectively removed the criminal element from the immediate narrative, which helped clear a major political roadblock that had been preventing the confirmation of Warsh. Even so, Pirro has maintained that she would be willing to reopen the matter if any evidence of criminal wrongdoing surfaces.

Powell has been very clear that he feels a personal obligation to see this investigation through to the end. He noted that the events that have transpired over the last three months were a deciding factor in his choice to remain on the board. He feels that he has been left with no other responsible option than to stay until he is satisfied that the situation has been fully resolved.

“The things that have happened really in the last three months have, I think, left me no choice but to stay until I see them through at least that long,” he said.