Bloomberg: The Federal Reserve discusses the term of Williams, which may end in 2027 or 2028

Bloomberg cited informed sources reporting that as the longest-serving policymaker at the Federal Reserve approaches retirement, discussions are underway within the Fed regarding the term limit rules for regional Fed presidents. The focus is on whether John Williams, the president of the New York Fed, can serve until June 2028, which would mark his 10-year tenure as president of the New York Fed, or if he must step down when he turns 65 in June 2027.

According to relevant rules, regional Fed presidents are typically required to retire at 65; however, those who are first appointed after the age of 55 may serve for up to 10 years or until they reach 75, whichever comes first, as determined by the regional Fed board. One point of contention is whether the years Williams served as president of the San Francisco Fed from 2011 to 2018 count toward this 10-year limit. Williams himself and several observers have previously interpreted the rules as allowing him to serve until June 2028. He told Bloomberg last month that he plans to serve until that time and described it as a commitment to the New York Fed board and his family.

If Williams steps down in 2027, Federal Reserve Chairman Kevin Warsh would have the opportunity to influence the appointment of this important regional Fed leader a year earlier. Informed sources say it is currently unclear whether Warsh or other board officials support ending his term early; if there is a push for him to leave prematurely, it could provoke opposition from other regional Fed presidents, who may be concerned about further Washington intervention in regional Fed operations. A spokesperson for the Federal Reserve Board and Pat Wang, chair of the New York Fed board, both declined to comment. The New York Fed board has not yet officially announced the initiation of the succession selection process, which typically takes several months.