Key Takeaways
- Powell remains in place temporarily as Warsh awaits the final oath of office.
- Senate confirmation cleared Warsh legally, but the leadership transfer still requires formal steps.
- Board members raised concerns about extending the temporary chair structure without further action.
Powell Holds Temporary Fed Post as Warsh Awaits Oath
The Federal Reserve Board announced on May 15 that Jerome Powell will serve as chair pro tempore while Kevin Warsh awaits swearing-in. Warsh was confirmed by the Senate on May 13 in a 54-45 vote, but he has not yet formally taken the oath of office.
Officials used the temporary designation after Powell’s term as chair ended Friday. Senate confirmation gives Warsh the legal path to the role, but the transition is not complete until the oath occurs. The board did not give a swearing-in date, leaving Powell in place until that final step. The Federal Reserve Board stated:
“Powell will serve as chair pro tempore until Warsh is sworn in as the new chair.”
Confirmation followed a delay tied to the Justice Department’s investigation into Powell. Senator Thom Tillis, a North Carolina Republican, had objected to moving Fed nominations while the probe remained active. He later dropped his opposition after prosecutors moved to end the investigation, allowing Warsh’s nomination to advance to a Senate vote.
Warsh’s Crypto Views Add a New Policy Dimension
Senate approval did not immediately make Warsh chair. The role still requires the oath of office, a formal handoff, and administrative steps. That gap led the board to use the chair pro tempore structure to keep the central bank under continuous leadership.
Warsh is widely viewed as more open to digital assets than prior Federal Reserve chairs. He has described bitcoin as a useful signal for policymakers, opposed issuing a Federal Reserve-backed central bank digital currency, and disclosed financial exposure to crypto projects before required divestments.
Vice Chair for Supervision Michelle Bowman and Governor Stephen Miran commented on the temporary designation after opposing an open-ended interim structure:
“We have a unique situation unlike any historical precedent. In this case, the prior chair’s term ends before the new chair, who has already been confirmed by the Senate, has been sworn in.”
That leaves Powell leading the Fed temporarily while Warsh’s start date remains pending. Bowman and Miran supported a short bridge period, but they opposed an open-ended designation without another board vote or potential presidential action.
