Why Powell is likely to stick around at the Fed
Jerome Powell will complete his term as Federal Reserve chair despite pressure from Donald Trump to exit. Powell intends to stay on the Fed board, citing a Department of Justice probe. While Kevin Hassett argued Powell should quit following a $2.4 billion headquarters renovation overrun, the Fed's inspector general found no administrative misconduct, illegal activity, or crimes related to the project. The Senate Banking Committee has already advanced Trump's pick for the next Fed chair, Kevin Warsh, whose nomination is moving to a full Senate vote.
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- ✓ The Federal Reserve's inspector general found no administrative misconduct or illegal activity in the Fed's renovation project.
- ✓ Jerome Powell intends to stay on the Fed board.
- ✓ The Senate Banking Committee approved the nomination of Kevin Warsh for the next Fed chair.
What changed
The Fed's inspector general cleared Powell of misconduct regarding costly building renovations.
Live updates
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Jerome Powell to remain on Fed board amid renovation probe
Jerome Powell will complete his term as Federal Reserve chair despite pressure from Donald Trump to exit. Powell intends to stay on the Fed board, citing a Department of Justice probe. While Kevin Hassett argued Powell should quit following a $2.4 billion headquarters renovation overrun, the Fed's inspector general found no administrative misconduct, illegal activity, or crimes related to the project. The Senate Banking Committee has already advanced Trump's pick for the next Fed chair, Kevin Warsh, whose nomination is moving to a full Senate vote.
Why it matters
The dispute centers on the independence of the central bank and whether a president can remove governors over monetary policy disagreements. This tension is heightened by a push from the Trump administration to oust Powell. A successful removal could create precedent regarding the protection of Fed officials from political interference.
What is confirmed
- The Federal Reserve's inspector general found no administrative misconduct or illegal activity in the Fed's renovation project.
- Jerome Powell intends to stay on the Fed board.
- The Senate Banking Committee approved the nomination of Kevin Warsh for the next Fed chair.
Still unconfirmed
- Kevin Hassett claims Powell should exit the Fed board due to management lapses in the $2.4 billion HQ overrun.
- Donald Trump is pushing to oust Powell from the Federal Reserve.
What to watch next
- Full Senate vote on the nomination of Kevin Warsh.
- Potential attempts by the Trump administration to fire Fed governors.
confidence 90%Sources used for this update (20)
- spectrumlocalnews.com — Powell says he will stay on Fed board, citing DOJ probe
- www.fundssociety.com — Jerome Powell will complete term - Funds Society
- dictionary.cambridge.org — WHY | English meaning - Cambridge Dictionary
- The New York Times — Fed’s Watchdog Finds No Misconduct or Illegal Activity in Costly Renovations
- Fox Business — The final verdict is in for the Fed's troubled renovation and Jerome Powell
- Politico — Why Powell is likely to stick around at the Fed
- Reuters — The Fed's building renovations and Trump's push to oust Powell
- CNBC — Trump could target three Fed governors. Removing them may be harder than it looks
- paulkrugman.substack.com — A Globalist Comeback? - Paul Krugman
- www.conference-board.org — US Consumer Confidence
- wolfstreet.com — Homeowners Are Clinging to their Below-4% Mortgages for Dear Life as Mortgage Rates Went over 7% | Wolf S....
- finance.yahoo.com — Why Powell is likely to stick around at the Fed
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