Hassett criticized Powell's continued tenure, highlighting the conflict over seats on the Federal Reserve Board of Governors. Even after his term as chairman ends, Powell still has a governorship until January 2028; as long as he remains, the White House will have one less vacancy to immediately nominate, and the Board's voting structure won't be rewritten quickly according to political trends.
This will shift the market's focus from "who will be chairman and when interest rates will be cut" to slower-moving institutional variables: how the protection of governorships limits the president's immediate control over the central bank, and whether policy disagreements within the Fed in the coming years will manifest not only in interest rate forecasts but also in the potential reshaping of governorships.
