Criminal investigation raises key question: Whether Chair Powell leaves Fed in May
AP News • • business
Key Points:
- The Justice Department's investigation into Federal Reserve Chair Jerome Powell has intensified focus on whether he will leave the Fed entirely after his chair term ends on May 15 or remain as a governor until 2028, a rare move in Fed history.
- If Powell stays on the board, it could block the Trump administration from gaining a majority on the Federal Reserve’s governing board, limiting the president's influence over monetary policy and interest rate decisions.
- Republican senators have expressed reluctance to approve new Fed nominees until the legal issues surrounding Powell's testimony on Fed building renovations are resolved, potentially delaying any new chair appointment.
- Should Powell leave the board, Trump could secure a majority on the Fed by appointing additional governors, enabling significant changes to
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