Jerome Powell’s tenure as Federal Reserve chair concludes this Friday after overseeing the bank for eight years amid various political and economic crises.
Powell is handing over the reins of the Fed to incoming Chair Kevin Warsh. Warsh, also trained as a lawyer, is well known for his diplomatic skills and might follow a similar strategy to Powell, particularly as a precaution if Democrats gain control of Congress and lead the Fed’s key oversight committees.
Though Powell’s term as Fed chair has ended, his separate 14-year term as a Fed board member does not expire until January 2028.
Powell has promised to keep a low profile after his term ends, but he said he would stay at the Fed until he is confident that the bank has resisted the Trump administration’s attacks on its independence.
“I had long planned to be retiring,” said Powell, “The things that have happened in the last three months have, I think, left me with no choice but to stay until I see them through.”
Each Fed board member serves a staggered 14-year term, but the term length does not reset when a new board member replaces a departing one.
If Powell had left the Fed entirely on Friday, Trump could have nominated Warsh to serve the rest of Powell’s term as a board member while leaving another Fed board seat open for a different nominee.
By CEO NA Editorial Staff
