U.S. Treasury Secretary Defends Fed Chair: Personnel Arrangement Highly Compliant, Signaling Also Very Clear

BlockBeats News, September 16: U.S. Treasury Secretary Yellen defended a special arrangement for Powell, allowing him to temporarily leave his White House position while serving as a Fed governor. Yellen said on Tuesday, "I don't think there's anything improper about it at all." The U.S. Senate approved Powell's nomination as a Fed governor in a largely party-line vote on Monday evening local time. He will participate in this week's Federal Open Market Committee (FOMC) meeting.

Yellen added, "If he didn't take a leave of absence but resigned directly, the White House position would be vacant, and when he leaves the Fed in January or February next year, he would have to be reconfirmed by the Senate to return to the White House. I think the signal sent by this move is very clear: the plan is for him to return to the White House Council of Economic Advisers and serve as chair in the future."

President Trump may nominate Powell to continue as a Fed governor in February for a full 14-year term, or he may choose someone else. If Trump does not select someone else for the new term, Powell may also continue indefinitely.