Powell Fed Exit Snagged by Pirro Probe Subpoena Ruling
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- Kevin Hassett said the Fed chair nomination process is progressing swiftly, with confirmation proceedings expected to begin soon.
- Jerome Powell's term as Fed Chair is set to expire in May, and he has signaled willingness to step aside once a successor is confirmed, per Hassett.
- Powell has previously indicated he may not immediately vacate his position due to a continuing investigation led by Jeanine Pirro.
- A U.S. judge recently upheld a block on subpoenas tied to the Pirro investigation, a move that could trigger an appeal process.
- The legal back-and-forth may delay Donald Trump's effort to install a new Fed chair more closely aligned with the administration's policy preferences, Reuters reported.
- Even if Powell steps down as chair, his tenure on the Fed's board in a governor role extends until 2028.
Why it matters: Powell's potential reluctance to leave until the Pirro investigation resolves creates a path for him to remain a Fed governor until 2028, meaning Trump's preferred chair nominee would lead the board while a Powell-era governor retains a vote on monetary policy. A judge upholding the subpoena block introduces an appeals timeline that directly slows Trump's timeline for reshaping Fed leadership at a moment when rate-cut expectations are in flux.
