Whether Federal Reserve (Fed) Chair Jerome Powell will remain on the Fed Board of Governors after his chair term ends is drawing attention as he ultimately refused to clarify his position. At a press conference on the 28th, local time, Powell was asked four times whether he would stay on as a governor after his chair term ends on May 15, but he refused to answer, saying, "I don't want to discuss this issue further."
According to the Wall Street Journal (WSJ) that day, Powell's silence is being interpreted not as a simple personal choice but as a strategic judgment rooted in the Fed's governance structure. The Fed chair holds both a four-year chair term and a 14-year governor term concurrently, so a chair can keep the governor seat even after the chair term ends. Powell's governor term runs through 2028, so legally he can remain on the Fed Board even after stepping down as chair.
Typically, Fed chairs have left the Board when their terms ended, but they are not obligated to do so. Analysts say Powell's decision to keep his options open without stating a clear position is tied to mounting political pressure over Fed appointments and currency policy. The Trump administration has recently applied public pressure on the Fed over rate cuts, and Powell has repeatedly emphasized the principle of maintaining independence from the administration.
The Ministry of Justice's move earlier this month to open an inquiry into Powell's past congressional testimony has also complicated matters. On the surface, testimony regarding renovations at the Fed's headquarters has been called into question, but Powell's side is said to view it as an extension of political pressure over interest-rate policy. In this context, if Powell were to clarify whether he will resign, it could give the impression of yielding to pressure from the administration, which is a concern.
Powell's future also directly affects the Fed Board's personnel configuration. The Board currently has one governor nearing the end of a term, and if Powell resigns in May as is customary, President Trump would gain two governor slots. In that case, the administration could pursue appointments for both the next chair and a governor simultaneously, significantly expanding its influence within the Fed.
Conversely, if Powell keeps his governor seat, the vacancies available to the president would be limited. A new chair would have to be appointed to one of the existing governor seats, narrowing the range of personnel choices. Unless Powell states whether he will resign, the administration will find it difficult to finalize its Fed personnel plans. For that reason, some view Powell's silence as the "last card" to protect the Fed's independence.
Historically, it has been extremely rare for a chair to remain as a governor after a chair term ends. There is precedent from the 1940s when former Chair Marriner Eccles stayed on as a governor at the president's request, but it did not become customary thereafter. However, unlike then, there is now overt political pressure surrounding currency policy, and some say the possibility cannot be ruled out that Powell could choose to break precedent.
Powell avoided commenting on his own future that day but made his position clear on the principle of the Fed's independence. He warned, "If currency policy is not separated from political control, the Central Bank's credibility can be damaged." What Powell does after his term ends is expected to be an important test for gauging not only the Fed's personnel makeup but also the independence of U.S. currency policy.