PANews reported on April 28th that this week is destined to be significant for the Federal Reserve. Following the Justice Department's conclusion of its investigation into Jerome Powell, Republican Senator Tillis withdrew his obstruction of the confirmation process for Fed Chair nominee Walsh on Sunday. The Senate Banking Committee has scheduled a vote on Walsh's nomination for 10 PM Beijing time on Wednesday, clearing the way for a full Senate confirmation vote before the week of May 11th. Hours after the nomination vote, the Fed will announce its April interest rate decision, and Powell will hold his 63rd, and likely final, Fed Chair press conference. If Walsh's nomination for both Fed Chair and Board of Governors is approved, he will replace Miguel Milan, who temporarily filled the vacancy on the Board of Governors, becoming the shortest-serving official since the 1950s. If Milan fails to rejoin the Fed, he will attend his sixth and final Fed meeting this week, having consistently championed interest rate cuts.

The question now is whether Powell will follow convention and relinquish his board seat (which expires on January 31, 2028) upon stepping down as Federal Reserve Chairman (his term ends on May 15). If Powell chooses to leave immediately and another of Trump's own appointees fills his vacancy, Trump will have four of his own appointees on the seven-member Federal Reserve Board (Woller, Bowman, and Warsh). This provides support for Trump to take potentially aggressive measures (including removing regional Fed presidents) to dismantle the traditional structure of the Federal Reserve. Powell's final choice will directly influence the pace and extent to which Warsh or Trump reshape the way the Federal Reserve operates.