U.S. Treasury Secretary Basant: Powell should also resign from the Board when he steps down as Fed Chairman in 2026.

According to a report from Jin10 on July 15, U.S. Treasury Secretary Basent suggested that Fed Chair Powell should step down from the Federal Reserve Board of Governors when his term as chair ends in May 2026. Basent stated on Tuesday: "Traditionally, when the Fed chair steps down, they also resign from the Board. There has been much discussion about the 'shadow Fed chair,' suggesting that this could cause confusion before the official nomination. I can say clearly that if the former Fed chair remains on the Board, it could be very confusing for the market." Powell's term on the Fed Board is not set to end until January 2028, meaning that even if his term as chair ends in May next year, he could still remain at the Fed and be involved in monetary policy formulation. Powell has repeatedly evaded questions about whether he will continue to serve on the Board. This silence complicates decisions for President Trump and his aides as they adjust Federal Reserve leadership next year. Basent also mentioned: "The formal process for determining the nomination of the next Fed chair has begun, and there are many excellent candidates both inside and outside the Fed."