Powell declines to say if he'll remain on Fed board after chair term ends

Federal Reserve Chair Jerome Powell has declined to say whether he will remain on the Fed's Board of Governors after his chairmanship ends in May, saying he is focused on his remaining time as chair. The question matters for control of monetary policy. If Powell leaves, President Donald Trump's three appointees on the seven-member board would immediately hold a majority, potentially shaping the Open Market Committee and increasing pressure for lower interest rates.

Observers warn a board majority could give the administration leverage over Fed policy and might allow the board to remove individual regional bank presidents who oppose rate cuts, though there is uncertainty about the legal scope for such firings. Only one recent chair, Marriner Eccles, stayed on the board after his chairmanship and later helped secure the 1951 Treasury-Fed accord that reinforced Fed independence.

Most modern chairs have left the board when their chair terms ended. Powell faces a personal and professional choice after 13 years at the Fed, including eight as chair. He is seen as ready for civilian life but also loyal to the institution and conscious of threats to its independence amid presidential pressure on policy.

Many Fed watchers interviewed by CNBC say they expect Powell will likely leave when his chair term ends, though some allow for the possibility he might stay briefly. Staying would break recent tradition and could expose the Fed to heightened political criticism. The outcome of Gov.

Key Topics

Business, Federal Reserve, Jerome Powell, Fed Board, Trump, Interest Rates