Jerome Powell declared Wednesday that he intends to remain at the Federal Reserve after May 15 — as a governor, and, he says, as acting chairman until a successor is confirmed. On the chairmanship, he is wrong. On his seat as a governor, he has the legal right to stay — but whether he should is a different question entirely.
Powell’s term as Fed chairman expires in May. His term as a governor does not expire until January 31, 2028, or until a successor qualifies. Traditionally, Fed chairmen step down from their board seat when a new governor is confirmed, though this is custom rather than law. The most notable exception was Marriner Eccles, who remained on the board for several years after being replaced as chairman in 1946. But Eccles is best understood as a historical contrast, not a legal precedent. He stayed at President Harry Truman’s invitation, eventually withdrew as vice chairman, and departed under circumstances quite different from the current confrontation.
On the chairmanship itself, Powell was unambiguous. “That is what the law calls for. That is what we have done on essentially the same occasions, including involving me. And what we will do in this situation,” he said, asserting that he will serve as chairman pro tempore until his successor is confirmed.
Powell misstated both the history and the law.
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