Powell Is Right to Demand Clarity on Fed Independence: Editorial

Federal Reserve Chair Jerome Powell said last week he intends to remain on the central bank’s board after his term as chairman ends on May 15 — unless the Justice Department ends “with finality and transparency” its criminal investigation into the Fed’s renovations of its headquarters.

Powell’s decision is unusual and, as he doubtless appreciates, not without cost to the institution. It’s also entirely justified.

Powell’s successor as chair is more or less decided, following the Senate Banking Committee’s vote to advance the nomination of Kevin Warsh. But Powell’s term as one of the Fed’s seven governors is separate ...