U.S. Federal Reserve Chairman Jerome Powell speaks during a press conference at the Federal Reserve Building in Washington, DC, January 28, 2026.
Saul Loeb | AFP | Getty Images
Federal Reserve Chairman Jerome Powell said he intends to continue as head of the central bank unless his successor, Kevin Warsh, is approved by the end of his term in May, as required by law.
Separately, Powell said he would not leave his board position until the Department of Justice’s investigation into him is “secured with transparency and finality,” which technically extends into early 2028.
Powell said at a news conference Wednesday that he would serve as “chair pro tem” if Warsh, President Donald Trump’s nominee to replace him, is not confirmed by the Senate. Powell said this follows what has been done in several past scenarios.
The Federal Reserve Governor’s position on the Board of Governors is separate from his chairmanship. Powell has said he will not resign from the board until the Justice Department investigation is resolved and has not yet decided whether he will step down before his term as Fed director ends in early 2028.
“We haven’t made that decision yet,” Powell said. “I make decisions based on what I think is best for the facility and the people we serve.”
The Federal Reserve Act provides that in the absence of the chair and vice chair, the board “shall select a member to serve as chair pro tempore.”
Mr. Powell wants to avoid the appearance that he was forced off the board by political pressure.
A federal judge last week blocked a grand jury subpoena issued as part of Powell’s criminal investigation. The decision was seen as a major victory for Mr. Powell, whose investigation has become a political lightning rod within Mr. Trump’s Republican Party.
Critics saw the investigation as part of a broader politically motivated pressure campaign against Mr. Powell and the agency, with the aim of getting him to lower rates or resign. Sen. Thom Tillis, RN.C., said he would block Warsh’s confirmation until the federal investigation is complete.
In his ruling, U.S. District Judge James Boasberg said the Justice Department did not have a proper purpose for the subpoena. The judge said the government shares “virtually zero evidence” that Mr. Powell committed a crime.
“There is mounting evidence to suggest that the government served these subpoenas on the (Fed) Board of Governors in order to pressure the chairman to either lower rates or vote to resign,” Boasberg said.
U.S. Attorney for the District of Columbia Jeanine Pirro called Boasberg’s sentence “outrageous” and said the Justice Department would appeal.
“Mr. Jerome Powell is now blessed with immunity,” she said at a news conference. “This is wrong and has no legal authority.”
The Federal Reserve opted to keep interest rates on hold Wednesday, citing concerns about higher-than-expected inflation and uncertainty surrounding the ongoing U.S.-Iran war. President Trump has argued, including in remarks this week, that the Fed should cut interest rates to support the economy despite soaring oil prices.
