DOJ investigation into Powell could backfire on Trump, keep Powell in
Trump’s Efforts to Oust Powell May Backfire as Investigation Extends Fed Chair’s Tenure
WASHINGTON (AP) — In an unexpected turn of events, President Donald Trump’s longstanding desire to replace Jerome Powell as chair of the Federal Reserve may inadvertently result in Powell’s extended tenure. The unfolding situation comes as a Justice Department investigation, initiated by one of Trump’s own officials, stalls the confirmation of Powell’s successor, Kevin Warsh.
Investigation Delays Warsh’s Confirmation
Trump’s aspiration to replace Powell with former Fed official Kevin Warsh has hit a significant roadblock. The Justice Department is investigating brief comments made by Powell regarding the Fed’s building renovation. This has led Sen. Thom Tillis, a North Carolina Republican, to declare that he will not vote to confirm any Fed nominees until the investigation is resolved. With all Democrats on the committee also opposing the nomination, Tillis’ stance has effectively stalled Warsh’s confirmation.
Powell Prepared to Stay Amid Investigation
On Wednesday, Powell announced his intention to remain as chair of the Fed’s interest rate-setting committee post his term, should the investigation remain unresolved. “I have no intention of leaving the board until the investigation is well and truly over, with transparency and finality,” Powell stated. His membership on the Fed’s governing board extends until January 2028, potentially thwarting Trump’s chance to appoint a new chair.
An Ironic Twist
The scenario is particularly ironic given Trump’s well-documented discontent with Powell. However, it underscores the Fed’s success in maintaining its independence against political pressures. On Thursday, the JFK Library Foundation announced it would honor Powell with the John F. Kennedy Profile in Courage award for safeguarding the Fed’s autonomy.
Legal Battles and Public Perception
The DOJ’s investigation into Powell was weakened last week when a federal court dismissed two subpoenas issued by Jeanine Pirro, U.S. Attorney for the District of Columbia. The court found the subpoenas’ intent was to “harass and pressure Powell.” Despite this setback, Pirro intends to appeal, indicating a prolonged legal battle.
Patrick Harker, President of the Federal Reserve Bank of Philadelphia, noted the Fed’s emphasis on transparency and impartiality. “The independence of the Federal Reserve is crucial for maintaining economic stability,” Harker commented, reflecting on the ongoing tensions.
Conclusion
This unfolding situation highlights the complexities and unintended consequences of political maneuvering within government institutions. As the investigation into Powell continues, the implications for the Federal Reserve’s leadership and its independence remain significant. The situation serves as a poignant reminder of the need for clear separation between political ambitions and apolitical institutions.
Source: https://www.bostonherald.com/2026/03/19/federal-reserve-powell-investigation-backfire/