Powell's Fed Board Seat Decision Could Shape Warsh's Leadership

Fed Chair's choice to stay or leave could impact new chief Warsh's tenure and administration's influence over central bank

Mar. 20, 2026 at 10:04am

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Federal Reserve Chair Jerome Powell's upcoming decision on whether to keep his seat on the U.S. central bank's Board of Governors after his leadership term ends is now a key factor in how the tenure of his would-be successor Kevin Warsh evolves, and whether President Donald Trump and Treasury Secretary Scott Bessent can pursue any overhaul of the Fed's structure, operations and monetary policy.

Why it matters

Powell's decision could have significant implications for the Fed's independence and the balance of power between the central bank and the White House. If Powell stays on the board, it could create tension with the incoming Fed Chair Warsh and limit the administration's ability to influence the Fed's policies.

The details

Powell said he would not leave the Fed at least until a criminal investigation spearheaded by U.S. Attorney Jeanine Pirro is "well and truly over with transparency and finality," and that he had not yet decided whether to remain even longer in a governor's seat that lasts until 2028 - well into Warsh's potential leadership. Some analysts feel it is unlikely the Fed will end up with "two popes" and that the current back and forth between Powell and the Republican senators who back him, and Pirro and the Trump administration will end with the investigation closed, Warsh confirmed as the head of the central bank, and Powell retiring.

  • Powell's term as Fed chief ends in May 2026.
  • The U.S. midterm elections are in November 2026.

The players

Jerome Powell

The current Chair of the Federal Reserve, whose term is set to end in May 2026.

Kevin Warsh

The potential successor to Powell as the next Chair of the Federal Reserve, pending confirmation by the U.S. Senate.

Donald Trump

The President of the United States who has sought to influence the Federal Reserve's policies and structure.

Scott Bessent

The U.S. Treasury Secretary who has commented on potential changes to the Fed, including imposing residency requirements for regional bank presidents.

Jeanine Pirro

A U.S. Attorney leading a criminal investigation that is a factor in Powell's decision to remain on the Fed's Board of Governors.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.