The saga over President Donald Trump's efforts to reshape the Federal Reserve has another twist to it revolving over whether current Chair Jerome Powell will leave after his term at the helm is finished.
Powell is done as the central bank leader on May 15, and it's highly likely Trump will nominate his successor long before then. In fact, Treasury Secretary Scott Bessent told CNBC on Tuesday that the long-awaited pick could come as soon as next week.
However, Powell's 14-year term as governor stretches all the way to Jan. 31, 2028.
Historical precedent has been for almost all outgoing Fed chairs to leave their governor roles as well, but Powell could decide to buck that pattern if he feels threats to central bank independence are stark enough to necessitate him staying. That's what Marriner Eccles did in the late 1940s as he viewed his removal by then-President Harry Truman as a political move.
Trump has gotten increasingly vocal about controlling the Fed. That has happened through persistent criticism of Powell and his colleagues, his own appointments, as well as saying that he thinks the president should be consulted on interest rate decisions.
