Bessent Suggests Powell Should Leave Fed Board in May

Powell's term as a Fed governor doesn't end until January 2028, leaving it possible for him to stay at the central bank

- Bloomberg

U.S. treasury secretary Scott Bessent suggested that Federal Reserve (Fed) chair Jerome Powell should step down from the central bank's board when his term as chair is up in May 2026.

"Traditionally, the Fed chair also steps down as a governor," Bessent said in an interview with Bloomberg Television on Tuesday. "There's been a lot of talk of a shadow Fed chair causing confusion in advance of his or her nomination. And I can tell you, I think it'd be very confusing for the market for a former Fed chair to stay on also."