Powell Defies Trump, Signals Intent to Remain at Federal Reserve

Federal Reserve Chair Jerome Powell indicated he may remain at the central bank even after his current term expires, potentially setting up a contentious standoff with President Donald Trump. This move comes amid a Department of Justice investigation into Powell’s congressional testimony and ongoing efforts by the Trump administration to influence monetary policy.

Trump’s Longstanding Feud with Powell

President Trump has publicly expressed his dissatisfaction with Powell’s leadership of the Federal Reserve for months, repeatedly calling for lower interest rates to stimulate the economy. Trump nominated Powell to the position in 2017, but has since labeled him “one of my worst appointments.”

DOJ Investigation and Its Political Context

The Department of Justice initiated a criminal investigation into Powell following his testimony before the Senate Banking Committee regarding renovations to the Federal Reserve’s headquarters. The investigation, which Powell has called “unprecedented,” is widely seen as a politically motivated attempt to pressure him. A federal judge has since quashed the DOJ’s attempt to subpoena Powell, citing concerns that it was part of the Trump administration’s effort to lower interest rates.

Warsh Nomination Stalled

President Trump nominated Kevin Warsh to succeed Powell as Fed chair, but his confirmation has been stalled due to the ongoing DOJ investigation. Senator Thom Tillis has refused to vote on Warsh’s nomination until the investigation is dropped, effectively blocking the nomination process.

Powell’s Defiant Stance

Despite the investigation and the pending nomination of a successor, Powell stated on Wednesday, March 18, 2026, that he intends to remain as chair of the Fed’s interest rate-setting committee until the investigation is resolved. He also indicated he could stay on the board even longer if the investigation continues.

Implications for Monetary Policy

Powell’s willingness to remain in his position despite the political pressure raises questions about the independence of the Federal Reserve and the potential for further clashes with the Trump administration. The ongoing conflict could create uncertainty in financial markets and complicate the Fed’s efforts to manage monetary policy.

As of March 19, 2026, President Trump has signaled his continued support for the DOJ investigation into Powell.