Unsealed court records show Jerome Powell’s legal team told U.S. prosecutors in January that he would remain on the Federal Reserve Board after his term as chair ends if the criminal investigation against him continues. Reuters reported that the disclosure came from litigation in which the Fed sought to block a subpoena issued by the U.S. Department of Justice.
According to the records, Powell’s private lawyer said in a closed-door meeting on January 29 with U.S. Attorney Jeannine Pirro that Powell believed he would not leave the Board when his chair term expires in May 2026 if he was still under investigation. The lawyer also said that if Powell were no longer facing a criminal probe, his public position would look different and he would be able to make decisions focused on his family. The wording was careful. Its implications were not.
Board seat becomes part of the legal standoff
Read narrowly, the statement addressed Powell’s personal plans after leaving the chair. In context, it carried a harder message: if the investigation remains active, Powell could stay on as a Fed governor until his term on the Board ends in January 2028; if the probe is dropped, he could decide to step away when his chairmanship ends.
That matters because former Fed chairs do not usually remain on the Board after leaving the top post. If Powell does so, it would break with long-standing practice. Reuters also noted that Treasury Secretary Scott Bessent had publicly suggested Powell should resign his Board seat when his chair term ends, and the newly released records show Powell’s side did not treat that as automatic.
Judge blocks subpoena as DOJ prepares appeal
On the same day the records were unsealed, District Judge James Boasberg ruled for the Fed and blocked the Justice Department’s subpoena. In his decision, he said the government had offered no evidence of a crime beyond the fact that the chair had angered the president. That line gave the ruling unusual force.
The Justice Department said it plans to appeal. Pressure is also coming from Capitol Hill. Republican Senator Thom Tillis, a member of the Senate Banking Committee, said he would block confirmation of Powell’s successor until the investigation is withdrawn. If the appeal drags on, the transition to the next Fed chair could face delays.
Renovation costs and a wider political fight
The formal basis for the Justice Department’s investigation is the cost of renovating the Federal Reserve’s Washington headquarters. Even so, the dispute has been widely read as political pressure rather than a standard criminal matter. Powell has previously linked the investigation to his repeated refusal to grant President Trump’s requests for rate cuts, describing it as retaliation.
The timing is central. Powell’s term as chair ends on May 15, 2026, while his term as a governor runs until January 2028. If the DOJ appeal and the Senate confirmation fight move in parallel, uncertainty around the Fed’s leadership is likely to remain in place for months.