Powell says he will remain as Fed chair until successor is confirmed

WASHINGTON - Jerome Powell, the chair of the Federal Reserve, is not going anywhere. At least not for a while.

Powell, who has faced withering pressure from President Donald Trump just months before his term as chair ends, said Wednesday that he would continue to lead the central bank until his replacement was confirmed by the Senate.

Powell also said that even if his successor won confirmation, he would not leave the board entirely until the Trump administration concluded a criminal investigation into his handling of renovations at the Fed's headquarters. Powell has previously denounced that inquiry as politically motivated.

Technically, Powell's term as chair ends May 15, but he can continue to serve until a new leader is formally in place. He can also stay on as a governor until 2028. That outcome is likely to infuriate Trump, who has frequently lobbed personal attacks at Powell for not lowering interest rates more aggressively.

Powell offered the update during his customary post-meeting news conference shortly after the Fed voted to keep borrowing costs unchanged for the second time this year.

Citing precedent under federal law, Powell said he would continue to serve as chair until lawmakers could approve a successor. That process has only barely begun. Trump announced in January that he had picked Kevin Warsh, a former Fed governor, to take the reins as chair, but his nomination has faced significant roadblocks.

"That is what the law calls for," Powell said. "That's what we've done on several occasions, including involving me, and it's what we're going to do in this situation."

The Senate has not yet scheduled a hearing to consider Warsh, raising the odds that he will not be installed before Powell's term is complete.

The delay stems from a continuing investigation by the Justice Department into the central bank over renovations of its headquarters. Powell has previously described that inquiry as a pretext to get him to cut interest rates. Lawmakers from both parties have said they would block Warsh until the matter is put to rest.

"I have no intention of leaving the board until the investigation is well and truly over, with transparency and finality," Powell said.

Only days before the Fed meeting, a federal judge quashed grand jury subpoenas in that investigation, finding the inquiry itself to have been motivated by political animus. But the Trump administration has refused to back down and plans to challenge the judge's ruling, perhaps delaying Warsh's confirmation even further.

Even once it is resolved, Powell could choose to stay on at the Fed as a governor once a successor has taken his place. On that point, Powell said Wednesday that he had not yet made a decision but added that he would do so "based on what I think is best for our institution and the people we serve."

Powell's comments are bound to anger Trump, who only hours earlier repeated his attacks against the Fed for its handling of interest rates. The president has demanded steep cuts even as concerns mount that his policies - including his trade war and a new war with Iran - could cause prices to soar.

In a post on social media Wednesday, the president reprised a moniker for Powell as he renewed his demands. "When is ‘Too Late' Powell lowering INTEREST RATES?" he wrote.

This article originally appeared in The New York Times.