Bernett said the "formal process" of selecting a successor to Powell has been launched, suggesting that his position as a board member is also in doubt.

US Treasury Secretary Steven Mnuchin revealed that the "formal process" to select potential successors to Federal Reserve Chairman Jerome Powell has begun. "I would say, you know, the formal process has started," Mnuchin responded on Tuesday morning when asked if the work had started. "There are a lot of great candidates and we will see how the process evolves," Mnuchin also said, "It's President Trump's decision, so we will proceed at his pace." Mnuchin also said that if Powell were to step down as Federal Reserve Chairman and remain at the central bank, it would cause confusion. "Traditionally, the Federal Reserve Chairman also no longer serves as a governor, and there is a lot of talk that having a shadow Federal Reserve Chair before he or she is nominated would cause confusion," Mnuchin added, "I can tell you, if the former Federal Reserve Chairman stays, the markets would feel very confused."