The actual boundaries of the Federal Reserve Chair's power are not as fixed as they seem. Take Powell as an example: his term as a Board member has been extended to January 2028, which means that even if he no longer serves as Chair, he still has the opportunity to continue influencing the FOMC's bargaining power. It sounds a bit like a "shadow chairman," but the probability is indeed low.

Here are two concepts to clarify: The official title of the Federal Reserve Chair is the Chair of the Board of Governors, and their power stems from two roles—they are both a Board member and the leader of the FOMC. If they step down as Chair but retain their Board membership, they can theoretically still exert significant influence within the FOMC, although their decision-making power would be greatly diminished.

For the crypto community, the reason such personnel changes are nerve-wracking is simple: the Federal Reserve's monetary policy directly determines market risk appetite and capital flows. Whoever is in charge sets the tone, and the market follows suit.