Jerome Powell to Serve as Interim Chair of the Federal Reserve Until Kevin Warsh's Confirmation

Jerome Powell will serve as the interim chair of the U.S. Federal Reserve until Kevin Warsh is officially confirmed.

According to Yonhap News on May 16, the Federal Reserve announced on May 15 (local time) that it had appointed Powell as interim chair during a board meeting.

The Fed explained that this temporary appointment of the current chair aligns with previous practices during chair transitions. Since Warsh has not yet taken the official oath of office, Powell will temporarily retain the chair position to prevent any leadership gap.

However, Michelle Bowman, the Vice Chair for Supervision appointed by former President Donald Trump, and board member Stephen Moore expressed their opposition to the decision, stating that the interim chair's term should have a limit.

In a joint statement, they supported Powell's interim chair role until Warsh takes the oath but argued that the interim period should be explicitly limited to at least one week to one month, with a provision for re-voting to extend the term if necessary.

Powell, who has led the Fed since 2018, will officially conclude his chair term as of today. His term as a board member will continue until January 31, 2028. Powell has indicated that he will remain on the board until the conclusion of the Department of Justice's investigation.

Warsh is expected to be sworn in as the new Fed chair soon. The U.S. Senate approved his nomination on May 13. Market observers are keen to see how Warsh will navigate the White House's calls for interest rate cuts amid inflationary pressures. He is set to preside over the Federal Open Market Committee (FOMC) meeting scheduled for June 16-17.