ChainCatcher reports that, according to Jinshi Data, Treasury Secretary Becent suggests that Federal Reserve Chairman Powell should step down from the Federal Reserve Board when his chairman term ends in May 2026. Becent stated on Tuesday: "Traditionally, the Fed chairman also resigns from the board upon leaving office. There have been many discussions about a 'shadow Fed chairman' causing confusion before the formal nomination. I can clearly say that if the former Fed chairman continues to remain on the board, it could be very confusing for the market." Powell's term as a Fed board member runs until January 2028, which means he could potentially remain at the Federal Reserve and participate in monetary policy-making even after his chairman term ends next May.
Powell has repeatedly avoided responding to whether he will continue to serve as a board member. This silence complicates the decision-making process for President Trump and his assistants when adjusting the Fed leadership next year. Becent also said: "The formal process for determining the next Fed chairman nomination has been initiated, with many excellent candidates both inside and outside the Federal Reserve."
