DOJ investigation could push Powell to hold on to his seat at Fed

Powell’s term as chairman is up in May, but his term on the Fed Board of Governors doesn’t end until 2028. Traditionally, Fed chairs retire from the board after their term is up, allowing the president to fill the vacancy.

WHAT TO KNOW ABOUT THE DOJ INVESTIGATION INTO FED CHAIRMAN JEROME POWELL

But a defiant Powell announced in a video statement Sunday that the Justice Department was investigating him. Powell revealed the Fed recently received grand jury subpoenas related to testimony he gave to the Senate last year about renovation cost overruns of the Fed headquarters building in Washington, D.C.

Powell said that the inquiry was a pretext to put pressure on him to lower interest rates, threatening the independence of the Fed. That perceived threat could prompt