Jerome Powell May Stay on Fed Board Amid Criminal Investigation, Court Documents Reveal

Federal Reserve Chair Jerome Powell could break with decades of tradition by remaining on the Fed's Board of Governors after his chairmanship concludes in May, according to newly unsealed court documents. His attorneys reportedly raised this possibility during a January 29 meeting with Justice Department officials, adding a fresh layer of complexity to an already politically charged situation.

The disclosure emerged from a legal dispute in which the Fed successfully moved to block DOJ subpoenas tied to a criminal investigation into Powell's oversight of renovation projects at the central bank's Washington headquarters. A federal district judge sided with the Fed on Friday, quashing the subpoenas.

During the January meeting, Powell's legal team told U.S. District Attorney Jeannine Pirro that the Fed chair would likely stay on the board if the investigation remained open — but suggested his calculus could shift if it were dropped. DOJ attorneys characterized these remarks as an attempt to pressure prosecutors, calling the approach a form of "strongarming."

The 73-year-old Powell has not publicly addressed his post-chair plans. However, his potential continued presence on the board carries significant weight. With the Fed's governing board comprised of just seven members, Powell's vote could prove decisive on key monetary policy decisions — including interest rate moves that President Donald Trump has loudly pushed for.

Trump's preferred successor, former Fed Governor Kevin Warsh, faces a difficult Senate confirmation path. Powell's attorneys noted the administration currently lacks the votes needed to confirm a new board chair — a point that underscores the broader stakes surrounding Fed leadership and independence.

By tradition, outgoing Fed chairs vacate their board seats entirely. Powell's term as a governor, however, runs through January 2028, meaning he retains the legal right to stay on well into Trump's final year in office.