According to Nick Timiraos, a journalist known for his close ties to the FED, FED Chairman Jerome Powell delivered important messages regarding his role within the institution as his term comes to an end.
Powell’s remarks could have significant implications for the upcoming leadership change and political balance in Washington.
Powell hinted that he could remain in his role as chairman if a successor is not appointed before his term ends on May 15. This statement stands out as the clearest assessment to date regarding a possible transition process at the Fed.
On the other hand, Powell stated that he would not resign from the FED Board of Governors as long as the investigation being conducted by the Department of Justice against him continues.
Powell also stated that he has not yet made a final decision on whether he will continue his role on the FED Board of Governors if the investigation concludes and a new chairman is appointed. Under the current legal framework, Powell has the right to serve as a member of the FED Board of Governors until 2028 after his term as chairman ends.
This situation is also closely related to US President Donald Trump’s sphere of influence over the Fed. According to Timiraos, if Powell remains on the Board of Governors, a seat that Trump can directly appoint will disappear. The fact that three of the seven members of the Fed’s Board of Governors are currently appointed by Trump makes this balance even more critical.
*This is not investment advice.
