Powell Refuses To Leave Fed Over ‘Ongoing Threats’

Federal Reserve Chairman Jerome Powell says he is not leaving the board of governors of the central bank anytime soon, over concerns over a “series of legal attacks.”Mr. Powell made the announcement Wednesday during his final press conference as chairman. Mr. Powell can remain a member of the board of governors for two years after his term ends May 15. The decision to stay blocks President Trump from nominating another member to the board.Mr. Powell said that he welcomed United States attorney for the District of Columbia, Jeanine Pirro, announcing last week that her office’s probe into the Fed would end. He noted, however, that she said would not hesitate to restart the investigation at any point.“I’m encouraged by recent developments and I’m watching the remaining steps in this process carefully,” Mr. Powell said.“I’ve said that I will not leave the board until the investigation is well and truly over, with transparency and finality, and I stand by that,” he added.He called the actions Mr. Trump has taken against the central bank “unprecedented” and said there were “ongoing threats” of additional legal action.“I worry that these attacks are battering the institution and putting at risk the thing that really matters to the public, which is the ability to conduct monetary policy without taking into account political factors,” Mr. Powell said.Mr. Trump has been highly critical of the Federal Reserve and Mr. Powell as part of a pressure campaign to lower interest rates.Ms. Pirro opened a criminal probe into Mr. Powell after Mr. Trump pushed for an investigation into cost overruns on a $2.5 billion renovation of the Fed headquarters.One of the allegations was that Mr. Powell lied to Congress when questioned about the overruns on the project, which was initially estimated at $1.9 billion.Mr. Powell released a video in January to disclose that the Justice Department had served the Federal Reserve with grand jury subpoenas, threatening a criminal indictment.A federal judge threw out the subpoenas saying they were politically motivated but Ms. Pirro planned an appeal and said she was moving forward with the investigation. She suddenly reversed course and announced the end of the probe after Mr. Trump suggested he was open to an alternate investigation.The Fed’s inspector general has been carrying out an investigation into the building project since last summer.Mr. Powell is not the only Fed official that has been targeted by Mr. Trump. He attempted to fire another governor, Lisa Cook, over allegations of mortgage fraud despite her not ever being criminally charged. Ms. Cook is fighting the firing, arguing that her removal was for political reasons and not “for cause” as required. She says she was not given due process in fighting the allegations.The Supreme Court has heard arguments in Ms. Cook’s case but has yet to rule. The justices have given Mr. Trump broad authority to fire other federal appointees but have cautioned that the Fed is unique.Mr. Trump nominated Kevin Warsh to replace Mr. Powell. The nomination had been delayed due to the investigation but the Senate Banking Committee, on Wednesday, moved Mr. Warsh’s nomination to the full Senate for a vote.Mr. Powell congratulated Mr. Warsh for his confirmation moving ahead and said that he would keep a low profile on the board when Mr. Warsh takes over.Mr. Powell said he has long planned to retire but “I will leave when I think it is appropriate to do so.”

Powell Refuses To Leave Fed Over ‘Ongoing Threats’

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