Powell says he has ‘no intention of leaving’ Fed during DOJ investigation

Federal Reserve Chairman Jerome Powell said Wednesday that he will remain at the central bank while the Department of Justice’s criminal investigation continues.

“I have no intention of leaving the Board until the investigation is fully resolved with transparency and finality,” Powell said, referring to the Federal Reserve Board of Governors, commonly known as the Fed Board.

With the probe complicating efforts to confirm his successor, Powell said that if no replacement is in place by the end of his term as chair, he would continue serving as chair pro tempore until one is confirmed.

“That is what the law calls for,” he said. “That’s what we’ve done on several occasions, including in my own case, and it’s what we’re going to do in this situation.”

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The federal investigation centers on Powell’s June 2025 testimony to lawmakers about the Federal Reserve’s renovation of its two historic main buildings on the National Mall, a project that has drawn scrutiny from Republicans and the Trump administration.

On Jan. 11, Powell disclosed that the Justice Department had opened a criminal investigation tied to that testimony, an unusual development for a sitting Fed chair.

In a rare video statement, Powell called the probe “unprecedented” and described it as another salvo in what he said was President Donald Trump’s pressure campaign on the central bank to cut rates. The unusually public response followed days of private consultations with advisers and stood out for a Fed chair known for his measured approach.

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The video statement echoed Powell’s earlier testimony before the Senate Banking Committee, where he forcefully disputed claims about lavish features in the renovation project.

Testifying before the Senate Banking Committee, Powell said: “There’s no new marble. There are no special elevators. They’re old elevators that have been there. There are no new water features. There are no beehives, and there’s no roof garden terraces.”

Powell added that no one “wants to do a major renovation of a historic building during their term in office,” and said cost overruns were driven in part by unexpected construction challenges and inflation.

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The renovation is estimated to cost $2.5 billion and is being funded by the central bank itself, not by taxpayers.

The Fed is self-financing and does not rely on congressional appropriations to cover its operating expenses, which include employee salaries, facilities maintenance and the current renovation. 

Its primary income comes from interest earned on government securities and fees charged to financial institutions.

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Powell, a Trump nominee first tapped to lead the Fed in 2017, is expected to finish his term at the end of May.

Trump has picked former Fed governor Kevin Warsh to replace Powell, but the nomination is effectively stuck after Sen. Thom Tillis vowed to block any Fed nominees while the DOJ probe remains open.