Federal Reserve's Milan Comments on Powell's Future Role

Federal Reserve Board member Milan expressed on Friday his desire for current Federal Reserve Chair Powell to remain briefly as a board member after stepping down from his chair position. According to Odaily, Milan emphasized the importance of ensuring this is merely a transitional phase, rather than Powell having any undisclosed motives for staying on as a board member. Powell stated last week that he would continue as a board member for a period after his chair term ends, with his board term lasting until 2028. Milan hopes to see whether the Trump administration's legal challenges against the Federal Reserve will cease. Although Powell's continued presence on the board might provide a counterbalance to Kevin Warsh's reform plans for the Federal Reserve, Powell mentioned last week, "I do not wish to be a high-profile dissenter." Milan stressed the need to ensure this is a transitional phase to prevent internal loyalty divisions within the Federal Reserve and avoid uncertainty about leadership. He added, "This is why I believe, despite Powell's presence aiding the transition, we must ensure it remains a transitional period."