Internet reports that U.S. Treasury Secretary Bessant suggested that Federal Reserve Chairman Powell should step down from the Federal Reserve Board of Governors when his term as chairman ends in May 2026. "Traditionally, the chairman of the Federal Reserve will also resign as a director when he leaves office," Bessent said on Tuesday. There has been a lot of discussion about a 'shadow Federal Reserve Chairman' before he is formally nominated. I can make it clear that if the former Federal Reserve chairman continues to stay on the board, it could be very confusing for the market." Powell's term as a Fed governor will not end until January 2028, which means that even if his term as chairman ends in May next year, he may still remain at the Fed and participate in monetary policy formulation. Powell repeatedly avoided responding to whether he would continue to serve as a director. This silence complicates decisions by President Trump and his aides when they restructure the Fed's leadership next year. Besent also said: "The formal process for determining the nomination of the next Fed chairman has begun, and there are many excellent candidates both inside and outside the Fed."