Powell's move of retreating to advance is quite interesting; holding the board seat since 2014, his influence won't disappear, just changing his approach to impact the market.

ME News reports that Powell's reappointment approach is unusual, but he will act discreetly during his board tenure and not become a "shadow chairman" challenging Wacht. If he follows through on his words, he might return to the FOMC and express moderate views on interest rate issues. Although no longer leading policy, due to the board's 14-year term and misaligned structure, he still has influence over the future of the Federal Reserve. If Powell departs, Trump could have nominated Wacht to fill the remaining term and reserved a seat for a potential nominee, but in reality, only Wacht can fill the Milan seat.