A New Leader — and a New Showdown — at the Fed
The Daily
May 14, 2026
Jerome Powell’s decision to remain on the Fed’s Board of Governors after being replaced as Chairman marks a historic shift in institutional independence. By refusing to step down entirely, Powell is attempting to block further political encroachment by the Trump administration, effectively forcing an awkward, divided leadership structure.
Key insight: Powell is the first Fed chair in decades to remain on the Board of Governors after his term as chair ends, a move specifically designed to deny the sitting president an additional appointment and preserve institutional autonomy.
