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Powell Named Temporary Fed Chair as Warsh Awaits Swearing-In

The unusual stopgap highlights legal gray areas in Fed succession.

Overview

  • The Federal Reserve Board, which voted Friday, named Jerome Powell chair pro tempore to lead until Kevin Warsh is sworn in.
  • Governors Stephen Miran and Michelle Bowman opposed an open-ended interim term and urged a short time limit or a renewal vote, and they also questioned the lack of clear legal authority cited.
  • Kevin Warsh won Senate confirmation on Wednesday in a 54–45 vote and is awaiting the oath, with Miran’s resignation set to take effect once Warsh takes office.
  • Following Friday’s hotter inflation reports and oil above $110 a barrel, Treasury yields jumped and traders scaled back expectations for 2026 rate cuts, setting a tougher backdrop for the next chair.
  • Powell will remain a voting governor through January 2028, an uncommon setup that reshapes the 12-member FOMC as it wrestles with how to communicate on rates and whether to consider cuts.