Bessant: Powell should leave the Fed Board when he leaves as Fed chairman in 2026
US Treasury Secretary Benson suggested that Federal Reserve Chairman Powell step down from the Federal Reserve Board when his term as chairman ends in May 2026. Benson said on Tuesday: "According to tradition, the Federal Reserve Chairman also resigns from the Board when stepping down. There have been many discussions about the 'shadow Federal Reserve Chairman', suggesting that it could cause confusion before the official nomination. I can clearly say that if the former Federal Reserve Chairman continues to serve on the Board, it could be very confusing for the market." Powell's term as a Federal Reserve Board member will not end until January 2028, which means that even if his term as chairman ends next May, he may still remain at the Federal Reserve and participate in monetary policy making. Powell has repeatedly avoided responding to whether he will continue to serve on the Board. This silence has made the decision-making process for President Trump and his aides to adjust the leadership of the Federal Reserve next year more complicated. Benson also stated: "The formal process for determining the nomination of the next Federal Reserve Chairman has been initiated, and there are many excellent candidates both internally and externally at the Federal Reserve."
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