U.S. President Weighs Fed Leadership Amid Criminal Investigation
U.S. President Donald Trump stated on January 15, 2026, that he has no immediate plans to dismiss Federal Reserve Chair Jerome Powell despite an ongoing Department of Justice (DOJ) criminal investigation into a $2.5 billion renovation project at the Fed’s Washington headquarters. Trump emphasized it is "too early" to decide final actions, adding, "Right now, we’re in a little bit of a holding pattern."
Probe Centers on Testimony, Renovation Project
The investigation, launched earlier this month by the U.S. Attorney’s Office for the District of Columbia, examines whether Powell provided false testimony to Congress in June 2025 regarding the project. Powell recently confirmed receiving a DOJ subpoena and called the probe a "pretext" to pressure him over interest rate decisions.
Succession Plans Take Shape
Trump revealed he is considering former Fed Governor Kevin Warsh or White House National Economic Council Director Kevin Hassett as potential successors, while ruling out Treasury Secretary Scott Bessent. Powell’s term as chair expires in May 2026, with his board membership lasting until 2028.
Analysts suggest the uncertainty could ripple through Asian markets, where central banks closely monitor Fed policy shifts. Investors are advised to watch for volatility in currency and bond markets as the situation develops.
