The Chairman of the Federal Reserve (Fed), also known as the Federal Reserve Board, Jerome Powell, is set to complete his term in May 2026, and there is already speculation about his next steps.
During an event in Dallas on Thursday, Powell was asked about the possibility of becoming the first chairman in over seventy years to continue serving as a Fed governor after stepping down. However, Powell simply stated that he is focused on fulfilling his current term as chairman and did not elaborate further on his future plans.
“I will definitely complete my term,” Powell said. “That is my sole focus at the moment.”
Powell’s term as a board member extends until January 2028. The last chairman to continue serving as a Fed governor after stepping down was Marriner Eccles, who stepped down as chairman in January 1948 but remained a board member until July 1951.
Normally, presidents do not wait until the current chairman’s term ends to nominate a successor or reappoint the current chairman. Typically, nominations are made about three to four months in advance to allow for the confirmation process in the Senate, preventing nominees from gaining undue influence over the current Fed chairman.
In 2012, Powell was appointed as a member of the Federal Reserve Board by former President Barack Obama and was later designated by President Trump to succeed Janet Yellen as chairman.
After assuming office in 2021, President Biden re-nominated Powell to continue serving as chairman, with his current term set to end in May 2026.
The term for the Federal Reserve Chairman is four years, while board members serve a longer term of 14 years. Powell filled the remainder of former board member Frederic S. Mishkin’s term in 2012 and officially became a board member in 2014, with his term extended until January 2028.
The Federal Reserve is one of the most influential central banks globally, with the Fed Chairman being able to steer the direction of US monetary policy, vote on interest rate policies, and manage the Fed’s substantial balance sheet.
Previously, a prominent candidate for Trump’s new Treasury Secretary and renowned investor, Scott Bessent, suggested that the incoming president could nominate Powell’s successor early and seek Senate confirmation. This could potentially weaken Powell’s influence towards the end of his term and advance the preferred monetary policies of the Trump administration. However, Trump has not yet expressed support for this approach.
Another vacancy that Trump could fill at the Fed is Adriana Kugler’s position as a board member, appointed by Biden and serving at the Fed since September 2023. Her term is set to expire in January 2026.
During a speech delivered in Uruguay on Thursday, most of Kugler’s remarks focused on the independence of the Federal Reserve.
Kugler stated, “It is widely recognized that central bank independence is fundamental to achieving good policies and economic outcomes, a point supported by economic research.”
At the start of the event in Dallas, when Powell was asked about his views on Kugler’s statements, he agreed with her perspective and noted that the independence of the Federal Reserve enjoys broad support from both political parties in Congress.