It seems that this is not just a simple legal threat; the true purpose is deeper. The key is to push Powell to resign from his Federal Reserve Board position along with his chairmanship after stepping down in May — although according to regulations, his board term is supposed to continue until January 28.

Interestingly, a review of historical records shows that among the 16 Federal Reserve chairs, only 2 have continued to hold their board positions after leaving office. Former chairs like Yellen, Bernanke, and Greenspan generally choose to resign from the board simultaneously at the end of their chairmanship, which is a common practice in the industry. So this policy adjustment, to some extent, is redefining the power structure.