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DOJ investigation into Powell could backfire on Trump and keep Fed chair in office

WASHINGTON (AP) — President Donald Trump has for months wanted to remove Jerome Powell as chair of the Federal Reserve. But instead, an investigation by one of his own officials could end up extending Powell’s time at the top of the central bank even after his term formally ends May 15.

Trump has nominated former Fed official Kevin Warsh to succeed Powell. Yet Warsh’s confirmation has been delayed by a Justice Department investigation into brief comments Powell made before the Senate Banking Committee last June about the Fed’s building renovation. Sen. Thom Tillis, a North Carolina Republican, has said he won’t vote to confirm any Fed nominees until the investigation is dropped.

With all Democrats on the committee also opposed to moving forward, Tillis’ stance has effectively blocked the committee from advancing Warsh’s nomination.

On Wednesday, Powell said he would remain as chair of the Fed’s interest rate-setting committee after his term ends if no successor has been confirmed. And he said he could stay even longer if the investigation continues.

“I have no intention of leaving the board until the investigation is well and truly over, with transparency and finality,” Powell told reporters.

In addition to his term as chair, Powell is a member of the Fed’s seven-person governing board until January 2028. Chairs typically step off the board completely when they are no longer chair, but Powell could remain on the board and deny Trump the opportunity to fill another seat.

Powell declined on Wednesday to say whether he would step down even after the investigation is completed.

“I have not made that decision yet,” he said. “I will make that decision based on what I think is best for the institution and the people we serve.”

It’s an ironic twist of events given Trump’s well-documented ire toward Powell, and reflects the success the Fed is having in protecting its independence through the courts and in Congress.

Separately, on Thursday the JFK Library Foundation said it would present the John F. Kennedy Profile in Courage award to Powell on May 31.

Powell is being awarded for “protecting the independence of the Federal Reserve … despite years of personal attacks and threats from the highest levels of government.”

By resisting the pressure, Powell “safeguarded one of the country’s most essential apolitical institutions,” the foundation said.

Last week, the DOJ investigation into Powell was severely hobbled last week when a federal court threw out two subpoenas issued by Jeanine Pirro, U.S. Attorney for the District of Columbia, that sought information from the Fed about its $2.5 billion building renovation.

“There is abundant evidence that the subpoenas’ dominant (if not sole) purpose is to harass and pressure Powell either to yield to the President or to resign and make way for a Fed Chair who will,” U.S. District Judge James Boasberg wrote.

Pirro said last week that she would appeal the decision and was unconcerned with any delays it would cause in Warsh’s ability to take over from Powell.

“I don’t even know who he is,” Pirro said of Warsh. “Politics is not the lane I’m in right now. … We are focused on the law.”

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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