By Diccon Hyatt

Fed Chair Jerome Powell isn't going anywhere, at least for now.

Powell will hold on to his seat on the Fed's seven-member board of governors after his term as Fed chair expires May 15, he said at a press conference Wednesday.

"After my term as chair ends on May 15, I will continue to serve as a governor for a period of time to be determined," he said. "I'm waiting for the investigation to be well and truly over with finality and transparency. I am waiting for that, and I will leave when I think it's appropriate to do so,"

Powell's announcement makes him the first Fed official since 1951 to serve as Fed chair and remain on the central bank's board of governors after their term expired. Powell's term as a governor ends in 2028.

Powell's decision extends a conflict between him and President Donald Trump that has led to a debate about the the independence of the Fed. Powell had said he would not resign from the board unless the Justice Department dropped a criminal probe of him over costly renovations at the central bank's Washington headquarters. Powell said he would not resign until the investigation was halted "with transparency and finality." Although the Justice Department dropped the probe last week, the prosecutor in charge of it left open the possibility of restarting it.

Powell and his allies had denounced the investigation as an intimidation tactic by the White House to pressure Powell and the Fed into following Trump's demands to sharply lower interest rates.

Powell said he was standing by his decision not to leave until the probe was fully over and done with. "I'm encouraged by recent developments, and I'm watching the remaining steps in this process carefully," he said.

Powell said he would maintain a low profile as a board governor and would not interfere with his successor, Kevin Warsh, taking charge of the central bank.

Powell staying on the board is a setback for the Trump administration in its efforts to influence the Fed's leadership. With Powell staying, the only open seat on the board belongs to Stephen Miran, a Trump appointee who has, like Trump, pushed for lower interest rates. Miran's term technically ran out in January.

Powell said he would cooperate with Warsh constructively and not act as a "shadow chair" wielding outsized influence compared to other governors.

"I respect the role of chair," he said.

This article has been updated after publication with additional comments from Jerome Powell's press conference.

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Source: Investopedia