By Michael S. Derby
March 18 (Reuters) – Federal Reserve Chair Jerome Powell said on Wednesday he’ll stick around as head of the U.S. central bank until his successor is confirmed, and will not leave the institution until a criminal investigation into the Fed is resolved.
“If my successor is not confirmed by the end of my term as chair, I would serve as chair pro-tem” until that’s resolved, Powell said in a press conference following the end of the Fed’s latest two-day policy meeting. He said that is what “the law calls for” and “that’s what we’ve done on several occasions, including involving me, and that’s what we’re going to do in this situation.”
Powell’s term as head of the Fed ends in May. President Donald Trump has nominated former Fed Governor Kevin Warsh to succeed Powell, but Warsh has yet to be confirmed into that role by the Senate. The timing of his potential confirmation is unclear, and the process is not likely to move forward until the conclusion of a criminal investigation into the central bank launched by the U.S. Department of Justice.
Senator Thom Tillis, a Republican member of the Senate Banking Committee, has said Warsh will not be confirmed until the probe is over. A U.S. judge last week quashed subpoenas tied to the investigation, which seemed to open a path for the Senate’s formal consideration of the Warsh nomination. A Department of Justice official, however, said the ruling will be appealed.
“I have no intention of leaving the Board until the investigation is well and truly over with transparency and finality,” Powell told reporters on Wednesday, referring to his seat on the Fed’s Board of Governors.
Powell can remain a Fed governor until 2028 even after stepping down from the central bank’s top job. He told reporters on Wednesday that he would make that decision at the proper time. Fed chiefs usually leave the central bank when their leadership stints end.
(Reporting by Michael S. Derby; Editing by Chris Reese and Paul Simao)
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