Powell has successfully been reappointed to the Federal Reserve Board, and his reappointment is completely lawful in terms of procedure, with a clearly stated intent—to use a “placeholder” approach to block the White House from further infiltrating the Federal Reserve.

After choosing to end his term as Federal Reserve Chair on May 15, 2026, he will continue to fulfill his duties as a Board member until the end of his term naturally at the end of January 2028, making him the first person in 75 years to remain on the Board after stepping down as chairmanship, breaking with convention.

This decision directly responds to the Trump administration’s “judicial pressure.” In mid-2025, the Department of Justice launched a criminal investigation into Powell, citing cost overruns in the Federal Reserve headquarters building renovation project. Although the investigation was revoked in April 2026, due to a clause leaving room to “restart if necessary,” Powell used his decision to stay as a direct countermeasure.

His strategic intent in remaining is clear: by occupying a seat on the Board, he aims to prevent Trump from obtaining an additional nomination slot for a Board member, thereby limiting the political space for the White House to place more “its own people” and manipulate monetary policy.

Of course, this move also faces some political pressure. Powell was therefore mocked by Trump as “there’s nowhere else he can go except the Fed,” and Treasury Secretary Besent also criticized the move as “violating tradition.” While the investigation has been withdrawn, legal threats have not disappeared completely, and he has made it clear that he will only consider stepping out once the investigation “has truly ended in a transparent, unchangeable way.”
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