Federal Reserve Governor Stephen Miran said Jerome Powell should remain on the Board of Governors after his term ends to ensure a smooth transition [1].
The move is intended to stabilize financial markets and provide continuity for the incoming chair, Kevin Warsh, as the central bank undergoes a leadership change.
Powell's term as Fed Chair expires on May 15, 2026 [2]. During an interview on Bloomberg Surveillance last Friday, May 8, Miran said that Powell's continued presence on the board would reduce uncertainty [3].
"We need a smooth transition to Kevin Warsh, and staying on the board is the best way to achieve that," Miran said [3].
Miran suggested that the arrangement should be temporary. He said, "I hope the current central bank chair staying on the board will be transitional" [4].
Despite advocating for the move to ensure stability, Miran has previously noted the irregularity of such a decision. In a separate comment, he said Powell's decision to stay as a governor after May 15 violates all norms [5].
This tension highlights a divide in how the transition is perceived. While some reports suggest the leadership handover is on shaky ground, Miran said that keeping Powell on the board is the most effective way to manage the handover to Warsh [2, 3].
The Federal Reserve remains the primary engine for U.S. monetary policy, and any perceived instability during a change in leadership can lead to volatility in global markets.
“"We need a smooth transition to Kevin Warsh, and staying on the board is the best way to achieve that."”
The debate over Jerome Powell's status reflects a conflict between institutional norms and the desire for market stability. By advocating for Powell to remain as a governor while acknowledging that doing so violates standard protocol, Miran is prioritizing the mitigation of market volatility over traditional Fed precedent during the hand-off to Kevin Warsh.
