Will Jerome Powell remain at the Federal Reserve after his term as chair ends?

Jerome Powell’s term as Federal Reserve chair ends in May 2026, but his term as governor doesn’t end until January 2028. While he has the option to stay, historically, most Fed chairs have resigned from the Board of Governors once their term as chair is over. The last time a Fed chair stayed on as governor after their term ended was in 1948: Marriner Eccles ended his term as Fed chair that year and continued to serve on the Board of Governors until 1951.

President Donald Trump nominated Kevin Warsh to be the next Fed chair on January 30, 2026. Should Powell choose to stay beyond May and finish his term as governor, his continued service could prevent the White House from nominating a new governor, too, which could potentially reshape the composition of the board.

What’s the difference between a Fed chair and a Fed governor?

The Federal Reserve Board of Governors is a federal agency located in Washington, D.C. There are seven board members, each of whom is nominated by the president and confirmed by the Senate. All members – called governors – serve staggered 14-year terms, with one term expiring every two years.

As the governing body of the Fed, the Board of Governors is tasked with overseeing the operations of the nation’s 12 Reserve Banks. The president nominates one of the seven appointed governors to serve as Fed chair, along with two vice chairs. Although all seven governors serve on the board and the Federal Open Market Committee (FOMC), only one holds the title of chair.

While all Fed governors have an equal vote on monetary policy, the Fed chair has a unique leadership role within the Board of Governors. The chair sets the agenda for FOMC meetings, guides internal debate among members and acts as the public face of the Fed. In comparison, governors get to vote on interest rates and monetary decisions, but they don’t control the policy agenda.

Will Powell stay or go?

Powell could choose to finish his term on the Board of Governors once his chair term ends, though little is known. Powell did not say much in January and February about his plans for after his chair term ends in May.

“I’m focused on my remaining time as chair,” Powell said when asked about the matter at the Fed’s post-meeting press conference in December 2025. “I haven’t got anything new on that to tell you.”

Most Fed chairs choose to resign their position on the Board of Governors once their term as chair ends, with some exceptions. So why would Powell want to stay on the board? Let’s consider a few potential reasons:

Why this might matter for your money

If Powell chooses to remain on the Board of Governors after his term as chair ends, it seems unlikely that the Fed will embrace an immediate shift in monetary policy. Powell staying on as governor could also affect how confident investors and consumers feel about the Fed’s future direction.

Financial markets tend to react not just to decisions on interest rates, but also to who’s making those decisions. Powell’s staying on as Fed governor, then, could signal continuity around how the Fed approaches inflation and economic risks. Without the authority of his former role as Fed chair, Powell wouldn’t set the board’s agenda or handle press conferences; he would, however, continue to have a vote on interest rates and monetary policy, and his very presence could affect the central bank’s approach to rate changes. On the consumer side, that could lead to more economic stability.

Powell’s decision could also shape how financial markets interpret pressures on the Fed. Markets tend to respond more favorably when policy seems to be driven by economic data, not by outside forces. If Powell stays on, some investors might see that as a sign the central bank is resisting external influences.

The bottom line

It’s unclear whether Powell plans to remain on the Board of Governors once his chair term expires in May. Nonetheless, his decision may affect investor expectations with regard to market stability during the leadership transition.

While the Fed’s actions can impact things that impact the market, Powell’s ultimate decision to stay or go isn’t something that investors should need to make investment decisions based upon. Rather, they should pay attention to how inflation, employment and economic growth continue to change – and how the Fed responds to those changes. Investors who continue to stay diversified, maintain a long-term perspective and avoid overreacting to temporary market fluctuations can remain positioned for potential success regardless of any changes in Fed leadership.

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