Federal Reserve Chairman Jerome Powell said Wednesday he will remain on the board indefinitely while an investigation into renovations to the central bank’s headquarters continues.
“I have said that I will not resign from the board until this investigation is fully and truly concluded with transparency and finality, and I stand by that,” Powell said near the beginning of the post-meeting press conference.
“My decisions on these matters will continue to be based entirely on what I believe is in the best interests of our institution and the people we serve, even after my term as board chair ends on May 15, and I intend to continue to serve on the board for a period to be determined,” he added.
By staying on, Powell would be denying President Donald Trump a majority on the board for now. The seven-person board of directors appointed by Trump also includes Christopher Waller and Michelle Bowman. Stephen Millan, an appointee of President Trump, continues to serve at the end of his term and is expected to step down after Warsh’s confirmation.
Chairman Powell’s decision to retain his position resolves, for the time being, a major issue that had been hanging over the Federal Open Market Committee’s meetings.
While most markets had already expected key interest rates to remain unchanged, there were bigger questions about Powell’s future. Powell’s term as chairman ends next month, but he has two years left in his term as president.
The chairman, who has served for eight years, congratulated Kevin Warsh on his appointment. Mr. Warsh’s nomination cleared a crucial hurdle early Wednesday when the Senate Banking Committee voted to advance Mr. Warsh to the full seat for a vote.
“I’m going to keep a low profile as governor,” Powell said. “There’s only one chair…When Kevin Warsh is confirmed and sworn in, he will be that chair.”
In addition to Warsh, Powell also addressed the harsh criticism he received from President Donald Trump, who appointed Powell to the position during his first term.
Powell said Trump’s often personal criticisms are “unprecedented in the 113-year history of our country” and said he was concerned about the impact on the agency.
“I’m concerned that these attacks are hurting financial institutions and putting at risk what really matters to the public: the ability to conduct monetary policy without taking political factors into account,” he said. “Being able to rely on a central bank that operates as such, free from political influence, for the long term is critical to our economy and to the people we serve.”
A Department of Justice investigation into building renovations has been at the center of recent controversy.
U.S. Attorney Jeanine Pirro subpoenaed Powell, but the court rejected the inquiry, and Pirro vowed to appeal. Mr. Pirro in recent days referred the investigation to the Federal Reserve’s inspector general, helping to weed out any criminal elements and remove political hurdles that threatened to delay Mr. Warsh’s confirmation.
But Pirro said he would reopen the matter if there was evidence of criminal activity.
For his part, Powell vowed to remain in office until the investigation is “truly and completely concluded.” Although he is satisfied with recent developments, he said that the events of the past few months have had a significant impact on his thinking, which is why he decided to stay.
“Given what actually happened over the last three months, I don’t think I had any choice but to stay, at least until it’s over,” he said.
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