Powell to Stay on Fed Board as Governor, Blocking Trump’s Path to Majority

Federal Reserve Chair Jerome Powell announced he will continue to serve on the Fed Board of Governors after his term as Chair ends in May 2026, citing an ongoing Department of Justice investigation as the reason he cannot retire. This decision keeps Powell on the board until January 2028, crucially blocking President Donald Trump's ability to appoint a fourth governor and secure a majority influence over monetary policy votes. Powell stated he would not act as a "shadow chair" but a constructive participant, and he congratulated Kevin Warsh, the Trump nominee expected to become the next Fed Chair. Trump had appointed three governors previously and a vacant seat would have given him a working majority on the Federal Open Market Committee (FOMC). Powell's continued presence is seen by some as a move to limit the administration's ability to reshape rate-cut policy, with the first FOMC meeting under Warsh's leadership expected to be an early test of consensus-building for desired rate cuts.

(Source：BeInCrypto)