Trump signals DOJ should continue Powell probe, complicating Warsh Fed nom

President Donald Trump on Thursday signaled his continued support for the Justice Department’s investigation of Federal Reserve Chairman Jerome Powell; It’s a stance that could further delay the confirmation of his potential successor, Kevin Warsh.

“He is under investigation for building a building that cost hundreds of billions of dollars more than necessary,” Trump said of Powell in the Oval Office.

He was referring to ongoing renovations at the Fed’s headquarters in Washington, which is allegedly the focus of a federal investigation into the central bank governor led by U.S. Attorney General Jeanine Pirro.

Powell accused the government of launching the investigation in retaliation for its refusal to cut interest rates as much or as quickly as Trump demanded.

Powell said Wednesday that he will not leave the Fed’s board until the investigation is “fully and truly” concluded with “transparency and certainty.”

He also said that even if the investigation is concluded, he has not decided whether he will leave before the end of his term as governor.

“I haven’t made that decision yet,” Powell said. “I will make this decision based on what I think is best for the organization and the people we serve.”

Powell’s term as Fed chairman will end in May, while his term as chairman will last until 2028.

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