The boundaries of the Federal Reserve Chair's power are not as fixed as many imagine. 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 holds the chairmanship, 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 — being a member of the Board and being the leader of the FOMC. If they step down as Chair but retain their Board membership, in theory, they can still exert significant influence within the FOMC, although their decision-making power would be greatly diminished.

For the crypto community, the reason why such personnel changes can cause nerves to fray is simple: the Federal Reserve's monetary policy directly determines market risk appetite and capital flows. Whoever is in charge, the market will follow.