Federal Reserve Chair Jerome Powell will remain on the Fed’s Board of Governors beyond his term as chair, citing unprecedented legal attacks by the Trump administration that threaten the central bank’s independence. Powell expressed concern that these actions could politicize monetary policy and stated he would stay until ongoing investigations are definitively concluded. This decision effectively blocks President Trump from immediately appointing a more dovish nominee to Powell’s board seat. Powell clarified his continuation on the board was not political but a response to these external pressures, and he intends to maintain a low profile as a governor.
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Federal Reserve Chair Jerome Powell has announced his decision to remain on the Board of Governors indefinitely while an investigation into renovations at the central bank’s headquarters concludes. Powell stated his commitment to staying until the probe is resolved with transparency, emphasizing that his decisions are guided by the best interests of the institution. This choice temporarily prevents President Trump from securing a majority on the Board of Governors, as Trump’s other appointees include Christopher Waller and Michelle Bowman. Powell also addressed the unprecedented nature of criticism from President Trump, expressing concern that such attacks undermine the Federal Reserve’s independence and its ability to conduct monetary policy free from political influence.
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Senator Thom Tillis has announced his vote to confirm Kevin Warsh as the next Federal Reserve Chair, following assurances from the Justice Department that its investigation into Fed Chair Jerome Powell has concluded. Tillis had previously blocked Warsh’s nomination in protest of this investigation, which centered on a renovation project at the Fed’s headquarters. With the Justice Department stepping back and allowing the Fed’s Inspector General to conduct its review, the path is now clear for Warsh’s confirmation. This development allows Warsh to proceed to a full Senate vote as planned, potentially by the end of the week.
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The Justice Department has dropped its criminal investigation into Federal Reserve Chair Jerome Powell and the central bank regarding a renovation project. This decision follows the Inspector General’s ongoing review of the building’s cost overruns, a process initiated by Powell himself amid pressure from President Trump. While the criminal probe is closed, the Inspector General’s inquiry continues to scrutinize the substantial cost increases, and the Justice Department has stated it may reopen the investigation if warranted by new facts.
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Following Federal Reserve Chair Jerome Powell’s request for an inspector general review of a renovation project criticized by then-President Trump, Inspector General Pirro initially pursued a criminal probe. However, Pirro has now announced the closure of her investigation, stating she has directed her office to do so as the IG undertakes its inquiry. Pirro indicated she will not hesitate to restart a criminal investigation if the facts warrant it, while the IG spokesperson confirmed the ongoing evaluation of the building renovation project and its subsequent public and congressional release.
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Despite subpoenas related to a costly renovation of the Federal Reserve’s headquarters, federal prosecutors acknowledged in a court hearing that they currently lacked evidence of any crimes committed by Federal Reserve Chair Jerome Powell. The investigation, which began following political pressure from the President, was questioned by a judge who found the justifications for the probe to be “thin and unsubstantiated.” Ultimately, the judge quashed the subpoenas, stating the government had presented “essentially zero evidence to suspect Chair Powell of a crime.”
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In a recent press conference, Fed Chair Jerome Powell acknowledged that the current AI-driven data center boom is contributing to inflation in the short term. He explained that the massive physical infrastructure required to build these data centers is placing significant pressure on goods and services, thus pushing prices up. While acknowledging the potential for future productivity gains from AI, Powell suggested that the demand-side buildout is currently outpacing any disinflationary benefits, potentially raising the neutral interest rate rather than lowering it in the near future. The empirical question remains whether demand will grow faster than supply, leaving the ultimate impact of AI on inflation and interest rates uncertain for now.
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A newly revealed email directly contradicts Donald Trump’s assertion that he expelled Jeffrey Epstein from Mar-a-Lago in 2004. This document, which was allegedly unredacted for Congress but not the public, disputes Trump’s account of their relationship. The withholding of this information by the Department of Justice, according to claims, violates transparency laws and raises questions about potential cover-ups regarding Trump’s involvement with Epstein.
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The recent decision by a federal judge to quash subpoenas issued against Federal Reserve Chair Jerome Powell is a significant development, and it’s been met with a range of reactions, some quite impassioned. At its core, the ruling reinforces a fundamental principle of legal process: that legal proceedings must have a solid basis and not be initiated simply on a fishing expedition. The judge’s action suggests a commitment to upholding established legal standards, which is crucial for maintaining the integrity of the justice system.
What’s particularly noteworthy is the contrast drawn between the judge’s adherence to legal precedent and what some perceive as a less rigorous approach to prosecution.… Continue reading
Federal Reserve Chair Jerome Powell plans to attend the Supreme Court’s oral argument on Wednesday in a case concerning the attempted firing of Fed governor Lisa Cook. This move represents an unusual show of support by the central bank chair amid a legal challenge regarding President Trump’s ability to remove Cook from the Fed’s board. Powell’s attendance follows his recent condemnation of subpoenas issued to the Fed by the Trump administration, seemingly signaling a shift towards a more public defense against attacks on the central bank. If Trump succeeds in removing Cook, he could appoint a replacement, potentially influencing the Fed’s decisions on interest rates and bank regulation.
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John Q. Hosedrinker 
Matt Underwood