Trump started a battle with Jerome Powell, but the Fed chairman is winning the war: He won’t leave until probe is ‘well and truly over’ |
Trump started a battle with Jerome Powell, but the Fed chairman is winning the war: He won’t leave until probe is ‘well and truly over’
When Donald Trump turned his attention to the U.S. central bank, and attacked Jerome Powell at its helm, he didn’t think that would be the reason Powell may ultimately stay in position longer than expected.Trump has nominated former Federal Reserve Governor Kevin Warsh to serve as the central bank’s next chairman. However, Warsh’s progression through the approval process faces a snag: A Department of Justice investigation into Powell, related to renovation works of Fed buildings in Washington D.C.A federal judge last week quashed the subpoenas issued against the Fed chairman, though U.S. Attorney Jeanine Pirro, who brought the case, has vowed to appeal the decision.Therein lies the problem: Powell has said he won’t leave the Federal Reserve Board until the matter is resolved, and Sen. Thom Tillis of the Senate Banking Committee says he will not advance any individual through the approvals process until the investigation is closed.
While Powell’s term as Fed chairman is due to finish this spring, his term on the board ends in 2028. In the slightly unusual event of Powell staying on, Trump would likely be displeased: He has blasted the chairman’s monetary policy, has called Powell stupid, and........