Court documents show that if the criminal investigation continues, Powell will remain at the Federal Reserve after his chairmanship term expires.

Last week, court documents related to Federal Prosecutor Jenny Piro’s investigation of the Federal Reserve showed that Fed Chair Jerome Powell feels it is necessary to remain on the Federal Reserve Board at least until legal proceedings are concluded.

This signal comes from statements made by both sides’ lawyers and is the first public indication that Powell might stay on the Fed Board even after his term as chair ends in May this year. His board term is not set to expire until January 2028.

Court documents reveal that Fed lawyers stated Powell’s private attorney “explicitly indicated that, in order to defend the independence of the central bank, Chairman Powell cannot resign during the criminal investigation.”

Observers and economists have been speculating for months whether Powell will fully leave the Fed after his chairmanship ends in May. Traditionally, departing chairs relinquish other positions within the Fed, but if Powell does so, it could give Trump an opportunity to appoint new board members. Trump has previously expressed a desire to nominate Federal Reserve Board members to push for lower interest rates.

Mark Spindel, co-author of The Myth of Independence: How Congress Manages the Federal Reserve, said, “This has been a question we’ve been considering. Powell might stay on the Fed after his term ends in mid-May. He still has several years left on his board term, which could thwart the president’s ambitions to control the Board and the Fed—a very valuable leverage.”

Powell has not publicly commented on whether he will stay on the Board. However, communications between the Department of Justice and Fed lawyers suggest that the Fed Chair is prepared to remain.

Court documents released on Friday also disclosed a conversation between the Department of Justice and Fed lawyers. During a meeting on January 29, the DOJ claimed that Powell’s private attorney told them, “If he is still under investigation, Powell feels he will not leave the Board after his term ends,” but this view might change once the investigation concludes.

Fed lawyers countered this interpretation, stating that the relevant communications should have been confidential and that any suggestion that Powell “proposed resigning to halt the investigation… is incorrect.”

Nevertheless, they acknowledged that as long as the criminal investigation is ongoing, Powell feels it necessary to stay at the Fed to defend the central bank’s independence.

According to Fox News, the U.S. Department of Justice has requested a judge to reconsider the decision to revoke the subpoena for Powell, with a related motion filed on Monday.

Columbia Law Professor Kathryn Judge, who studies the Federal Reserve, said that the longer the investigation lasts, the more obstacles Trump will face in trying to influence monetary policy.

She stated, “At this point, any efforts to appeal seem likely to conflict with the government’s interests. This could delay the nomination and confirmation of the new chair candidate, Waller, and prolong this seemingly baseless investigation. Piro may want to see this through, but that doesn’t mean it’s in the government’s best interest.”