Story perspectives

Powell Stays Put Amid Controversial DOJ Investigation

3/19/2026

Summary

Story summary

U.S. Federal Reserve Chair Jerome Powell will remain in his position until Kevin Warsh is confirmed by the Senate, even if that confirmation comes after Powell's term ends in May.
Powell will not leave the Board of Governors until the Department of Justice investigation into renovation costs at the Fed is resolved.
The probe has drawn criticism as a politically motivated effort to pressure him into resigning or altering monetary policy.
A federal judge quashed subpoenas related to the probe.
The DOJ plans to appeal the judge's quash of subpoenas.

History

Historical Context

The Federal Reserve Act, enacted on December 23, 1913, established the Federal Reserve System in response to the Panic of 1907, which saw a 50% drop in stock prices. This act aimed to stabilize the U.S. economy by creating a central banking authority. Today, scrutiny of Jerome Powell's leadership reflects ongoing tensions between political influence and the Fed's independence, echoing historical challenges faced by central banks.

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Story summary

U.S. Federal Reserve Chair Jerome Powell will remain in his position until Kevin Warsh is confirmed by the Senate, even if that confirmation comes after Powell's term ends in May.
Powell will not leave the Board of Governors until the Department of Justice investigation into renovation costs at the Fed is resolved.
The probe has drawn criticism as a politically motivated effort to pressure him into resigning or altering monetary policy.
A federal judge quashed subpoenas related to the probe.
The DOJ plans to appeal the judge's quash of subpoenas.

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