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6d ago

Fed Seeks Stability With Early Regional Reappointments as Powell Succession Nears

The unexpected renewals have calmed independence worries, strengthening expectations that Powell will exit the board when his chair term ends in May 2026.

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Federal Reserve Chair Jerome Powell during a press conference following the Federal Open Markets Committee meeting on December 10, 2025.
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Overview

  • The Fed reappointed regional bank presidents earlier than usual this month, a move viewed as reducing purge fears that followed White House suggestions about new conditions for those roles.
  • Analysts say the reappointments add stability to the FOMC and could clear the way for Jerome Powell to leave the Board of Governors after his chair term ends on May 15, 2026.
  • The White House is actively vetting a new chair, with Kevin Hassett frequently cited along with Kevin Warsh, Christopher Waller, Michelle Bowman, and Rick Rieder.
  • Legal uncertainty continues as Governor Lisa Cook challenges her removal in a case the Supreme Court plans to hear early next year, a ruling that could affect governance norms.
  • After three rate cuts in 2025 despite rare internal dissents, economists warn a new chair could still face a committee prepared to consider hikes if inflation stays stubborn as the labor market softens.