All articles tagged with #powell
A Senate hearing for Kevin Warsh’s Federal Reserve chair nomination has been postponed because the Banking Committee hasn’t received required paperwork, delaying a planned April hearing and clouding a mid‑May confirmation as Sen. Thom Tillis blocks the nomination until DOJ drops a criminal probe into Powell.
Fed Chair Jerome Powell said the central bank is watching energy-price spikes tied to the Iran war and other factors, but the Fed has limited tools to directly influence energy markets.
Powell said the U.S. economy faces mixed signals: downside labor-market risks argue for keeping rates low, while upside inflation risks argue against simply staying accommodative. The Fed remains committed to returning inflation to 2%, inflation expectations look stable, and there’s no immediate rate decision due to unresolved effects from the Iran war. The Fed’s March dot plot still indicates one rate cut in 2026, underscoring uncertainty about the policy path amid opposing forces.
Powell told a Harvard economics class that the economy is growing solidly and signaled a rate hold for now, as markets weigh a cautious policy path amid external risks. With his May term end and a stalled Senate confirmation of successor Kevin Warsh, plus investigations into Fed HQ renovations, the transition faces hurdles.
The Federal Reserve is opposing the Justice Department’s bid to reinstate subpoenas tied to a probe of Chair Jerome Powell’s congressional testimony, after the DOJ acknowledged it has no evidence of misconduct. Court filings show the Fed arguing subpoenas were improper and that a prior ruling quashing them could be reconsidered, potentially inviting an appeal. The standoff casts a cloud over Powell’s leadership as the White House weighs a successor and the Senate stalls on confirmation, delaying Fed policy and with potential global economic implications.
The Justice Department’s probe into the Federal Reserve’s $2.5 billion renovation found no evidence of criminal conduct, with a sealed March hearing transcript showing Assistant U.S. Attorney Andrew Massucco acknowledging uncertainty about fraud while noting cost overruns; Judge Boasberg later quashed the government’s subpoenas, saying there was essentially no evidence against Fed Chair Jerome Powell, and the investigation’s momentum stalled the Senate’s consideration of a Powell replacement.
During a March 3 hearing, a federal prosecutor told Judge Boasberg there’s no evidence of fraud or criminal misconduct by Fed Chair Jerome Powell in the $2.5 billion Federal Reserve headquarters renovations, even as subpoenas were issued and then quashed amid questions about the case. The DOJ probe began in January amid Trump’s criticisms and concerns over Fed independence; Powell’s term ends in May, with former Fed Governor Kevin Warsh nominated to take his place, though some lawmakers want the probe resolved before confirming him. The Washington Post first reported the court remarks.
A federal prosecutor conceded there is no criminal evidence in the Fed-related inquiry, signaling the probe is unlikely to yield charges, as Federal Reserve Chair Jerome Powell addressed reporters at a press conference.
In a closed-door hearing, a top deputy to U.S. Attorney Jeanine Pirro acknowledged that the Justice Department does not have evidence of wrongdoing in its probe of the Federal Reserve’s $2.5 billion renovations, undercutting Trump’s criminality claims; a federal judge also quashed the subpoenas, with the DOJ planning an appeal.
Powell says he will remain Fed chair past May as long as the DOJ probe into his congressional testimony concludes; Trump has pressed to replace him with Kevin Warsh, but Senate resistance—led by Sen. Tillis—has stalled Warsh’s confirmation, potentially keeping Powell in place and on the Fed Board through early 2028 after he steps down as chair.
A Justice Department probe into Fed Chair Jerome Powell’s remarks could backfire on Trump by delaying Warsh’s confirmation and potentially extending Powell’s tenure, as Powell hints he may stay on the Fed board beyond his term if the investigation lingers, complicating Trump’s efforts to reshape the Fed.
Fed Chair Jerome Powell said he will remain in his role even if Kevin Warsh’s confirmation fails, signaling continuity in U.S. monetary policy leadership as Warsh’s nomination lingers.
President Trump endorses a DOJ criminal probe of Fed Chair Jerome Powell tied to Powell’s testimony about the Federal Reserve HQ renovation, a move that could delay the confirmation of Trump’s pick to replace Powell, Kevin Warsh. Powell says he expects to stay on as acting chair if no successor is confirmed, while a federal judge ruled that subpoenas in the probe were a pretext to pressure rate cuts; Sen. Thom Tillis says he will not vote on nominees until the probe is resolved.
Fed Chair Powell rejects the stagflation label and says he’ll stay through an ongoing investigation as the Fed holds rates at 3.5%–3.75% and signals two potential cuts this year if inflation progresses. Oil-price shocks from the Iran war push near‑term inflation higher, though higher U.S. energy production could cushion some effects. Markets fell as investors weighed the policy stance against ongoing Middle East uncertainty.
The Federal Reserve kept the federal funds rate at 3.5%-3.75% and Powell said he will serve as chair pro tempore until a successor is confirmed. Warsh’s nomination is blocked by Sen. Tillis amid a criminal investigation, with Powell indicating he won’t leave the board until that matter is resolved. The Fed’s projections show at least one rate cut possible this year, but officials remain divided about the path ahead as inflation risks rise from energy prices and geopolitical tensions.