Bloomberg: The Federal Reserve is internally discussing the tenure of Williams, whose term could end in either 2027 or 2028.

Bloomberg, citing people familiar with the matter, reports that as the longest-serving Federal Reserve policymaker approaches retirement, the Fed is discussing term limit rules for regional Federal Reserve bank presidents. The focus is on whether John Williams, president of the Federal Reserve Bank of New York, can serve until June 2028, marking 10 years in his role, or must step down in June 2027 when he turns 65. According to relevant rules, regional Fed presidents generally must retire at 65; however, those first appointed after age 55 may serve until either completing 10 years in the role or reaching age 75, whichever comes first, as decided by the regional bank’s board. One point of contention is whether Williams’ tenure as president of the Federal Reserve Bank of San Francisco from 2011 to 2018 counts toward the 10-year term. Williams and several observers had previously interpreted the rules as allowing him to serve until June 2028. He told Bloomberg last month that he plans to stay in the role until that time, calling it a commitment to the New York Fed’s board and his family. If Williams departs in 2027, Fed governor Kevin Warsh would have the opportunity to influence the appointment of this key regional Fed leader one year in advance. The people familiar with the matter said it remains unclear whether Warsh or other board officials support ending his tenure early; requiring Williams to step down prematurely could trigger opposition from other regional Fed presidents, who fear further Washington interference in the operations of regional Fed banks. A spokesperson for the Federal Reserve Board and Pat Wang, chair of the New York Fed’s board of directors, both declined to comment. The New York Fed’s board has not officially launched a successor selection process, which typically takes several months.