"That is what the law calls for. That's what we've done on several occasions, including involving me," Powell said at a press conference following the Fed's decision to hold interest rates steady.
Powell also made clear he intends to stay on the Fed's board while a Department of Justice investigation of him continues.
"I have no intention of leaving the board until the investigation is well and truly over, with transparency and finality," he said.
The investigation has become a flashpoint in Washington; Last week, U.S. District Judge James Boasberg struck down subpoenas issued to the Fed, ruling they were designed to pressure Powell, though the lead prosecutor has said she will appeal.
The probe has also complicated the confirmation of Powell's potential successor, with Sen. Thom Tillis, R-N.C., threatening to block President Donald Trump's nominee, Kevin Warsh, a former Fed governor, until the matter is resolved.
Powell's stance adds a new layer to his long-running tensions with Trump, who has repeatedly criticized him over interest rate policy, arguing that rates have been kept too high and hindered economic growth.
Trump has sought greater influence over the Fed and is attempting to reshape its leadership through new appointments.
If Powell remains on the board after stepping down as chair, it would limit Trump's ability to install another appointee, preserving Powell's influence at the central bank.
Powell, whose term as a Fed governor runs through 2028, said he has not yet decided whether he would stay on after a successor is confirmed.
"I will make that decision based on what I think is best for the institution and for the people we serve," he said.