Justice Department probe of Powell could backfire on Trump and keep Fed chair in office

President Trump has sought to remove Federal Reserve Chair Jerome Powell, but a Justice Department investigation into Powell may inadvertently extend his tenure at the central bank beyond his May 15 term-end date. The probe, launched by a Trump administration official, could create legal complications that prevent Powell's removal or replacement during the investigation period. Powell's five-year term as Fed chair was set to conclude in May 2026, and Trump had publicly expressed frustration with Powell's interest-rate policies. An active Justice Department investigation into a sitting Fed chair would likely complicate any removal effort and potentially force Powell to remain in office longer than Trump prefers. The dynamics illustrate how Trump's effort to reshape the Federal Reserve leadership through legal channels may backfire procedurally.