State of affairs: The president is seeking to fire Cook — whose term runs through 2038 — for alleged mortgage fraud, an effort that has been blocked so far by the courts. The White House is planning a hearing on the allegations next month.
- Former Chairman Jerome Powell remained on the board as governor, a term that ends in January 2028.
- Michael Barr, whom former President Biden named as the top financial regulator, remained in office as governor for a term that extends through 2032.
- Philip Jefferson’s term as vice president ends next September, although his term as governor extends until 2036.
Between the lines: It would break with current precedent if these officials remained until the end of their terms. In recent decades, Fed governor positions have changed much more regularly, particularly after their term as chair or vice chair ends.
- Powell, Barr and Jefferson might feel more comfortable stepping down as governors before the end of their terms if they are confident that the Senate will block any replacement that does not respect the tradition of central bank independence.
Please note: Sen. Elizabeth Warren is set to chair the Senate Banking Committee tasked with promoting nominees for Fed governor, and she has accused Chairman Kevin Warsh of being a “shadow puppet” of the administration.
- Only one Senate Democrat, John Fetterman, voted to confirm Warsh.
Gn bussni
