According to ChainCatcher, U.S. Treasury Secretary Bessent suggested that Federal Reserve Chairman Powell should resign from the board when he leaves office in May 2026. Bessent stated that if the former chairman continues to serve on the board, it could cause confusion in the market.
Powell's term on the board ends in January 2028, and even if his term as chairman ends in May next year, he may still remain at the Federal Reserve. Powell has repeatedly avoided responding to questions about whether he will continue to serve on the board.
Bessent stated that the process for determining the nomination of the next Federal Reserve chairman has been initiated, and there are many excellent candidates both inside and outside the Federal Reserve. President Trump faces complex decisions as he adjusts the leadership of the Federal Reserve.