Powell staying on as Fed board governor ‘violates all norms,’ Bessent says
Treasury Secretary Scott Bessent criticized Federal Reserve Chairman Jerome Powell for planning to remain on the Fed's Board of Governors after his chairmanship ends, calling the move unprecedented and inappropriate. Bessent argued that Powell's continued presence could overshadow incoming chairman Kevin Warsh, whom President Trump has appointed. Powell's decision contrasts with historical precedent, as the only prior instance of a former chair staying on was at a sitting president's request.
- ▪Treasury Secretary Scott Bessent said Jerome Powell's decision to stay on the Fed board violates all norms.
- ▪Jerome Powell announced he will remain a governor after his term as chairman ends on May 15, despite not being requested to do so by President Trump.
- ▪The only other Fed chair to stay on as governor after their term was Marriner Eccles, who did so at President Harry Truman's request.
- ▪Kevin Warsh is set to become the new Fed chairman pending full Senate confirmation.
- ▪The Senate Banking Committee approved Warsh’s nomination 13-11 along party lines, with Senator Thom Tillis withdrawing his opposition.
Opening excerpt (first ~120 words) tap to expand
Treasury Secretary Scott Bessent said it’s time for Federal Reserve Chairman Jerome Powell to “move on” from the central bank after his term expires in mid-May, deriding Powell’s decision to stay aboard as a governor. “It’s Chair Powell’s decision to stay as a governor if he wants. I think it violates all norms. They would say that one other governor did stay that was at the request of the president. The president has not requested that Chair Powell stay,” Bessent said on Fox News’s Sunday Morning Futures.
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