Powell Signals He Could Stay at Fed Until 2028 as DOJ Investigation Escalates
Court filings released in Washington reveal Federal Reserve Chair Jerome Powell may remain inside the central bank’s leadership if a Justice Department investigation continues.
The disclosure comes as the White House intensifies pressure on the Fed to slash interest rates while the economy faces new strain from rising energy costs and global tensions.
According to court documents reported by Reuters and Bloomberg, Powell’s lawyers told federal prosecutors earlier this year that Powell could stay on the Federal Reserve’s Board of Governors beyond the end of his chairmanship in May 2026. Powell’s term as a board governor runs until January 2028, allowing him to remain influential even if a new chair is appointed.
The comments surfaced in legal filings tied to a criminal investigation led by U.S. Attorney Jeanine Pirro. Prosecutors are examining whether Powell misled Congress about cost overruns related to major renovations at the Federal Reserve’s Washington headquarters.
The case hit a major obstacle when U.S. District Judge James Boasberg blocked subpoenas issued against the Fed, saying the government failed to show evidence of criminal wrongdoing and suggesting the probe appeared designed to pressure Powell to lower interest rates or resign.
“The government has offered no evidence whatsoever that Powell committed any crime other than displeasing the president,” Boasberg wrote in the ruling.
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The Justice Department has now asked the court to reconsider that decision and plans to appeal, keeping the investigation alive. The legal battle is unfolding while President Donald Trump continues publicly urging the Federal Reserve to cut borrowing costs to support the economy.
The clash raises larger questions about the independence of the U.S. central bank. Economists warn that political pressure on the Fed could undermine financial markets and long-term inflation control if policy decisions become tied to election-year demands.
With Powell’s chairmanship set to expire in May and the investigation unresolved, the next phase of the legal fight and the future leadership of the Federal Reserve is likely to unfold in court.
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