Powell Says He Will Not Step Down; If Successor Is Delayed, Fed to Operate Under an Acting Chair

New York (Financial News) – Reporter Lee Byung-chulJerome Hayden Powell, Chair of the Federal Reserve System (Fed), has said he intends to remain in the post if confirmation of his successor is delayed, heightening political tensions around the leadership of the Fed.
At a press conference on the 18th (local time), Powell stated that if his designated successor, Kevin Warsh, fails to win confirmation from the United States Senate before his term ends in May, he will, under the law, stay on as head of the central bank. He explained that in that case he would serve in an "acting chair (chair pro tem)" capacity and noted that there have been similar precedents in the past.
Powell also made clear that he intends to retain his seat on the Board of Governors. Regarding his board position, which is legally guaranteed until early 2028, he said, "I have no intention of stepping down until the Department of Justice (DOJ) investigation is fully transparent and ultimately concluded." However, when asked whether he might resign before his term expires, he replied, "I have not decided yet."
Traditionally, a Fed chair steps down from the Board of Governors when the chair’s term ends, but Powell could remain a governor until 2028 if he chooses.
Powell said he would decide his future "based on what is best for the institution of the Fed and for the American people," indicating that his plans will depend on how circumstances evolve.
Earlier, a federal court blocked a grand jury subpoena issued as part of a criminal investigation into Powell. The ruling is seen as favorable to Powell, and the investigation itself has already become a political flashpoint within the Republican Party (GOP).

pride@fnnews.com Reporter Lee Byung-chul Reporter