Powell says he will stay on as head of the Fed until Warsh is confirmed

Federal Reserve Chair Jerome Powell says he will keep serving as head of the central bank if his nominated successor, Kevin Warsh, is not confirmed by the time his term is up in May, as dictated by the law.

Separately, Powell said he will not leave his Board of Governors position, which technically extends until early 2028, until the Department of Justice investigation of him is “well and truly over with transparency and finality.”

Powell said during his Wednesday press conference that he would serve as “chair pro tem” if Warsh, President Donald Trump‘s pick to take over the role, has not been greenlighted by the Senate. That follows precent done in several past scenarios, Powell said.

The Fed chief’s position on the Board of Governors is separate from his chairmanship. Powell said he wouldn’t exit the board until the Justice Dept. probe has been resolved, and hasn’t decided if he would depart before his term as Fed governor ends in early 2028.

“I have not made that decision yet,” Powell said. “I will make that decision based on what I think is best for the institution and for the people we serve.”

The Federal Reserve Act says that if a chairman and vice chairman are absent, then the Board “shall elect a member to act as chairman pro tempore.”

Powell wants to avoid any appearance that he was pushed off the board because of political pressure.

A federal judge last week blocked grand jury subpoenas issued as part of Powell’s criminal investigation. The decision was viewed as a major win for Powell, whose probe has become a political lightning rod within Trump’s Republican party.

Critics deemed the investigation as part of a broader, politically motivated pressure campaign on Powell and the institution, with the goal of having him lower interest rates or resign. Sen. Thom Tillis, R-N.C., said he would block the confirmation of Warsh until the federal investigation ends.

U.S. District Judge James Boasberg said in his ruling that the Justice Department didn’t have proper purpose for the subpoenas. The government has shared “essentially zero evidence” that Powell committed a crime, the judge said.

“A mountain of evidence suggests that the Government served these subpoenas on the [Fed’s] Board to pressure its Chair into voting for lower interest rates or resigning,” Boasberg wrote.

U.S. Attorney for the District of Columbia Jeanine Pirro said the Justice Department would appeal Boasberg’s ruling, which she called “outrageous.”

“Jerome Powell is now bathed in immunity,” she said in a news conference. “This is wrong, and it is without legal authority.”

The Fed on Wednesday opted to keep interest rates unchanged, citing concern over higher-than-expected inflation and uncertainty around the ongoing U.S.-Iran war. Trump has been vocal, including comments as recent as this week, that the Fed…