US Treasury Secretary Scott Bessent has suggested that Federal Reserve Chair Jerome Powell should step down from the central bank’s board in May 2026. Traditionally, Fed chairs serve two-year terms as governors after leaving their chair role. However, a “shadow” Fed chair would remain on the board before a potential nomination, causing market confusion. Bessent believes this would be confusing for investors if a former Fed chair stays on the board.
Source: https://www.bloomberg.com/news/articles/2025-07-15/bessent-says-formal-process-for-powell-succcessor-has-started