The Federal Reserve Board has temporarily designated Jerome Powell as chair pro tempore while preparations continue for Kevin Warsh to formally assume leadership of the U.S. central bank.
In a statement released Friday, May 15, the Federal Reserve said Powell would continue serving in the interim role after his term as chair officially concluded, pending Warsh’s swearing-in as the next Federal Reserve chair.
“As Chair Jerome H. Powell’s term as chair concludes, and with the swearing in of Kevin M. Warsh as his successor pending, the Federal Reserve Board on Friday named Powell as chair pro tempore,” the Board said.
The Fed added that the temporary arrangement follows precedent used during previous leadership transitions at the institution.
“This temporary action to name the incumbent as chair pro tempore is consistent with past practice during similar transitions between chairs,” the statement added.
Powell to remain temporarily
The announcement ensures continuity at the central bank while the transition to Warsh is finalized. However, the move also exposed divisions within the Federal Reserve Board after Vice Chair for Supervision Michelle Bowman and Governor Stephen Miran publicly declined to support the arrangement in its current form.
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In a separate statement issued Friday, Bowman and Miran said they backed Powell’s temporary service but objected to the absence of a clearly defined time limit.
“We support the temporary designation of Jay Powell as chair of the Board until Kevin Warsh can be sworn in to his term,” the statement read.
The two officials argued that the situation differs from previous transitions because the Senate has already confirmed Warsh but has not yet been sworn in.
“In this case, the prior chair’s term ends before the new chair, who the Senate has already confirmed, has been sworn in,” they stated.
Bowman and Miran said any interim designation should remain limited to “at least a week,” with a potential duration of up to one month to account for possible delays.
“If the new chair is not sworn in during this timeframe, the temporary chair designation should be subject to renewal by another vote of the Board or potential presidential action,” they added.
Because they opposed an open-ended timeframe, both officials said they could not support the Board’s action in its current form.
Trump nominated Warsh
The transition follows President Donald Trump’s nomination of Kevin Warsh earlier this year to lead the Federal Reserve after Powell’s term expired in May 2026.
Trump announced the nomination in January through a statement on Truth Social, praising Warsh’s background in monetary policy, banking, and financial markets.
Warsh previously served as a member of the Federal Reserve Board of Governors from 2006 to 2011 during the global financial crisis, becoming one of the youngest Fed governors in history at age 35.
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During his time at the central bank, Warsh acted as a key liaison between former Fed Chair Ben Bernanke and major Wall Street institutions during the 2008 financial crisis, including interventions involving Bear Stearns and AIG.
The White House also highlighted Warsh’s previous service in President George W. Bush’s administration, where he worked at the National Economic Council as Special Assistant to the President for Economic Policy.
Outside government, Warsh later joined Duquesne Family Office alongside billionaire investor Stanley Druckenmiller and became affiliated with Stanford University’s Hoover Institution and Graduate School of Business.
Federal Reserve transition
The Federal Reserve Board of Governors oversees U.S. monetary policy, banking supervision, financial stability, and payment systems.
Its seven governors also serve on the Federal Open Market Committee (FOMC), which sets benchmark interest rates and manages the country’s money supply.
The institution operates independently from direct congressional appropriations and is designed to remain insulated from short-term political pressures through staggered 14-year terms for governors.
Warsh has previously advocated for changes to Federal Reserve policy, including reducing the central bank’s balance sheet and limiting large-scale market interventions.
His appointment comes at a time when investors and policymakers remain focused on inflation trends, interest rates, and the broader direction of the U.S. economy.
As of Friday evening, the Federal Reserve had not announced a specific date for Warsh’s swearing-in ceremony.
