• Powell’s chairmanship expires May 15 but governor term runs through January 2028
• Last Fed chair to remain on board was Marriner Eccles who stayed from 1948 to 1951
• Move would prevent Trump administration from securing majority control of Fed board

WASHINGTON, DC (TDR) — Federal Reserve Chair Jerome Powell is increasingly expected to remain on the Federal Reserve Board of Governors after his chairmanship expires in May, marking the first time a Fed chief has stayed on as a governor in nearly eight decades while facing both a criminal investigation and intense White House pressure.

Powell’s unique situation stems from the Fed’s dual appointment structure, which separates the four-year chair position from the 14-year governor term. While his chairmanship ends May 15, 2026, his seat on the board extends through January 31, 2028, creating an unprecedented scenario that could reshape the central bank’s leadership dynamics.

Historic Precedent From 1948

The last Fed chair to remain as a governor was Marriner Eccles, who stayed on the board for three years after President Harry Truman declined to reappoint him as chair in 1948. Eccles played a pivotal role in the 1951 Fed-Treasury Accord that established modern central bank independence from political pressure.

“Only former Fed Chair Marriner Eccles stayed on as a governor when his 14-year tenure as chair ended in 1948,” according to CNBC reporting on Fed governance history.

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The Eccles precedent carries particular weight as Powell faces similar questions about Fed independence from executive branch interference.

Criminal Probe Intensifies Decision

Powell confirmed January 11 that the Justice Department served the Federal Reserve with grand jury subpoenas threatening criminal indictment related to his June 2025 congressional testimony about the $2.5 billion headquarters renovation project.

“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” Powell stated in his video address.

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The DOJ investigation has sparked bipartisan concern about central bank independence, with multiple senators questioning the timing and motivations behind the probe.

“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation,” Powell warned in his statement.

Senate Banking Committee Resistance

Republican Senator Thom Tillis of North Carolina, a Banking Committee member, announced he would block all Trump Fed nominees until the investigation concludes.

“If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none. It is now the independence and credibility of the Department of Justice that are in question,” Tillis said in his statement.

The Banking Committee holds a narrow 13-11 Republican majority, meaning Tillis’s opposition could deadlock nominations.

Trump’s Replacement Plans Complicated

President Trump has publicly criticized Powell repeatedly over interest rate policy and told The New York Times he has selected a replacement for when Powell’s chairmanship expires. Reported frontrunners include former Fed Governor Kevin Warsh and National Economic Council Director Kevin Hassett.

However, if Powell remains on the board as a governor, Trump would have only three appointments among seven board seats, falling short of the majority needed to control monetary policy decisions.

“I don’t think Powell wants to stay. I think he’s done with this job, and I don’t blame him,” Christopher Hodge, chief U.S. economist at Natixis CIB Americas, told Fortune.

Board Composition at Stake

The current Fed board includes three Trump appointees from his first term: Governors Michelle Bowman, Stephen Miran, and Christopher Waller. Powell was originally appointed to the board by President Barack Obama in 2012 before Trump elevated him to chair in 2018.

Fed watchers note that Powell’s decision carries implications beyond his personal tenure.

“Powell may protest by staging a sit-in. His term as Chair is up in May, but his term as a governor isn’t up until January 2028,” Brian Jacobsen, chief economic strategist at Annex Wealth Management, wrote to clients. “With the political pressure on the Fed, he may choose to stay on as a governor out of spite. It would deprive President Trump of the ability to stack the board with another appointee.”

What Comes Next

Powell has repeatedly declined to specify his plans when his chairmanship ends.

“I’m focused on my remaining time as chair. I haven’t got anything new on that to tell you,” Powell said at his December press conference.

The Supreme Court will hear arguments January 21 on Trump’s attempt to remove Fed Governor Lisa Cook over unproven mortgage fraud allegations, which could further impact board composition and Powell’s calculations.

Will Powell follow Eccles’s path and remain on the board to defend Fed independence, or will he step aside when his chairmanship ends?

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