US Fed Powell to serve as interim chairman until successor Warsh takes office

US Fed Powell to serve as interim chairman until successor Warsh takes office

Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), will serve as interim chairman until his successor, Kevin Warsh, takes office, after stepping down from the chairmanship on the 15th (local time), the Fed announced today.

The Fed announced today that it held a board meeting and designated Powell as interim chairman.

The Fed explained, "This interim measure of designating the current chairman as interim chairman is consistent with previous practices during a change in chairman."

Michelle Bowman, Vice Chair for Supervision, and Steven Myron, a director, both appointed by President Donald Trump, issued a joint statement regarding today's board decision, expressing opposition to not placing a limit on the interim chairman's term.

While they support Powell's performance as interim chairman until Warsh completes his oath of office, they argued that the interim chairmanship period should be explicitly limited to at least one week to one month, and if unavoidable, the term should be extended through re-voting.

Chairman Powell, who has led the Fed since 2018, concludes his term as chairman today. His term as a Fed governor runs until January 31, 2028.

Chairman Powell has previously stated that he will retain his position as a governor for the time being, even after his term as chairman ends, until the Justice Department's investigation is finally concluded.

Warsh, the nominee for the next chairman, is expected to be sworn in as the new Fed chairman soon. The U.S. Senate previously approved Warsh's nomination on the 13th.