The Fed may have reassured Powell that it's safe to leave the board early when a new chair takes over. 'I think he's done with this job' | Fortune

"It came after recent suggestions from the Trump administration that new conditions ought to be placed on the Fed presidents, raising fears it was eyeing a purge. That fit a pattern of extreme pressure on policymakers. Trump has relentlessly insulted Powell for not easing more, considered firing him, threatened to sue over cost overruns on the Fed's headquarters renovation, and is still attempting to oust Governor Lisa Cook."

"Given Powell's commitment to Fed independence, there were doubts that he would leave the board of governors when his replacement as chair comes in, bucking tradition, in order to retain a vote on the rate-setting Federal Open Market Committee and help ensure policy stays apolitical. His term as chair expires on May 15, 2026, but his term as a governor extends to January 2028."

""I don't think Powell wants to stay. I think he's done with this job, and I don't blame him," Christopher Hodge, chief U.S. economist at Natixis CIB Americas, told Fortune. He put a high probability on Powell leaving the board, but a few uncertainties remain. One is Trump's pick to be the new Fed chair. The current names under consideration-Kevin Hassett, Kevin Warsh, and Chis Waller-would be palatable, but an unserious candidate from left field would give Powell pause, according to Hodge, who previously served as principal economist at the New York Fed."

Reappointments of regional Federal Reserve bank presidents occurred earlier than usual, which surprised Wall Street and eased concerns about the Fed's independence amid President Donald Trump's demands for steeper rate cuts. The Trump administration recently suggested placing new conditions on the Fed presidents, raising fears of a purge and reflecting broader pressure including insults, threats of firing, litigation over renovation costs, and attempts to remove Governor Lisa Cook. Powell's chair term expires May 15, 2026, while his governor term runs to January 2028. With added FOMC stability, Powell appears likely to leave the board when a new chair arrives, though uncertainty over the chair pick remains.

Read at Fortune