Jerome Powell became Chair of the Federal Reserve through the path federal law lays out for the job: he was already a sitting Governor when a President picked him to lead the Board, and the Senate confirmed him. That happened twice. President Trump nominated him in 2017, and President Biden renominated him in 2021. Behind those two votes sits a career that moved from law to investment banking to the Treasury Department to private equity, and finally onto the Federal Reserve Board in 2012.
The Legal Path to the Chairmanship
Under 12 U.S.C. ยง 242, the President designates the Chair from among the sitting Governors for a four-year term, and the Senate votes to confirm.1Office of the Law Revision Counsel. 12 USC 242 – Ineligibility to Hold Office in Member Banks; Qualifications and Terms of Office of Members; Chairman and Vice Chairman; Oath of Office A President cannot pull someone off the street into the top job. The nominee has to be confirmed as a Governor first, either previously or at the same time as the Chair designation.
The Chair designation is also separate from the Governor seat. A person who loses the chairmanship when their four-year leadership term ends can stay on as a regular Governor until their fourteen-year Board term expires. Powell followed exactly this route: he became a Governor, then was picked twice for the four-year Chair role on top of that seat.
Career Before the Federal Reserve
Powell earned a bachelor’s degree from Princeton and a law degree from Georgetown University Law Center. He practiced law briefly, then moved into investment banking at Dillon, Read & Co., working on corporate finance and mergers.
In the early 1990s, President George H.W. Bush appointed him to the Treasury Department, where he served first as Assistant Secretary and then as Under Secretary. His portfolio covered policy on financial institutions and the Treasury debt market.2Federal Reserve. Jerome H. Powell, Chair That job gave him direct experience with how the federal government manages its borrowing and regulates banks.
After Treasury, Powell spent about eight years at The Carlyle Group, where he founded and led the industrial division within the firm’s U.S. buyout fund. Managing large acquisitions and portfolio companies built a reputation for handling complex financial structures.
Getting onto the Board of Governors
Powell joined the Federal Reserve in 2012, when President Obama nominated him to fill an unexpired term on the Board of Governors. He took office on May 25, 2012.3Federal Reserve History. Jerome H. Powell Two years later he was reappointed for a full fourteen-year term running through January 31, 2028.4U.S. Congress Joint Economic Committee. Jerome Powell: A Brief Introduction
A Governor who serves a full fourteen-year term cannot be reappointed. But someone who finishes another person’s unexpired term can be, which is what happened here.5Federal Reserve Board. Board Members
As a Governor, Powell focused on financial system oversight and regulation of large banks. By the time the chairmanship came open in 2017, he had five years inside the institution and a record that drew support from both parties.
Trump’s 2017 Nomination and First Confirmation
On November 2, 2017, President Trump announced Powell as his pick to replace Janet Yellen. The White House pointed to Powell’s “steady leadership, sound judgment, and policy expertise” during his time on the Board, along with his combined background in government and private finance.6Trump White House Archives. President Donald J. Trump Announces Nomination of Jerome Powell as Chairman of the Board of Governors of the Federal Reserve System
Presidents more commonly reappoint the incumbent. Trump broke that pattern, but he stayed inside the Fed rather than reaching for an outsider.
The Senate Banking Committee held the standard hearing after an FBI background check, then sent the nomination to the floor. Powell was confirmed on January 23, 2018, by a vote of 84 to 13.7United States Senate. U.S. Senate Roll Call Votes 115th Congress – 2nd Session He was sworn in as Chair on February 5, 2018.2Federal Reserve. Jerome H. Powell, Chair
Biden’s 2021 Renomination and Second Confirmation
On November 22, 2021, President Biden announced he would renominate Powell for a second four-year term. Biden cited Powell’s “steady leadership during an unprecedentedly challenging period,” including the pandemic-era downturn, and his work refocusing the Fed’s objectives on broad-based employment gains.8The American Presidency Project. President Biden Nominates Jerome Powell to Serve as Chair of the Federal Reserve
Keeping a Trump appointee was a choice about stability. Inflation was climbing, and swapping the Fed Chair mid-crisis carried its own market risk. The Senate confirmed Powell again, this time 80 to 19.9United States Senate. U.S. Senate Roll Call Votes 117th Congress – 2nd Session He was sworn in for his second term on May 23, 2022.3Federal Reserve History. Jerome H. Powell
What Happens When the Chair’s Term Ends
Powell’s second four-year term as Chair expired on May 15, 2026. President Trump nominated former Fed Governor Kevin Warsh to succeed him, and the Senate Banking Committee advanced Warsh’s nomination on a 13 to 11 party-line vote. While Warsh awaited full Senate confirmation, the Federal Reserve Board named Powell as chair pro tempore, a temporary designation consistent with past transitions.10Federal Reserve Board. Federal Reserve Board Names Jerome H. Powell as Chair Pro Tempore
Powell has said he will remain on the Board of Governors “for a period of time to be determined” after stepping down as Chair. His Governor term runs until January 2028, and he is entitled to hold that seat regardless of the chairmanship. Losing one does not mean losing the other.