How Jerome Powell could stay at the Federal Reserve until 2028

"Powell's term as Fed chair finishes on May 15, but because of the central bank's complex structure, he has a separate term as one of seven members of its governing board that lasts until January 31, 2028. Historically, nearly all Fed chairs have stepped down from the board when they are no longer chair. But Powell could be the first in nearly 50 years to stay on as a governor."

"Many Fed-watchers believe that the criminal investigation into Powell's testimony about cost overruns for Fed building renovations was intended to intimidate him out of taking that step. If Powell stays on the board, it would deny the White House a chance to gain a majority, undercutting the Trump administration's efforts to seize greater control over what has for decades been an institution largely insulated from day-to-day politics."

""I find it very difficult to see Powell leaving before midnight on Jan. 31, 2028," said David Wilcox, a former top economist at the Fed and senior fellow at the Peterson Institute for International Economics. "This is a mortal threat to the governance structure of the Fed as we've known it for 90 years. And I think that Powell does take that threat exceedingly seriously, and therefore will believe that it is his solemn duty to continue to occupy his seat on the board of governors.""

The Justice Department is investigating Federal Reserve Chair Jerome Powell over testimony about cost overruns for Fed building renovations. Powell's chair term ends May 15, but his separate governor term runs until January 31, 2028, allowing him to potentially remain on the board. Historically, chairs have left the board when no longer chair, but Powell could be the first in nearly 50 years to stay. Many Fed-watchers view the criminal investigation as intimidation aimed at preventing him from staying. If Powell remains, the White House would be denied a board majority, undermining efforts to gain greater control over the Fed. Powell has declined to comment on his plans.

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