The Federal Reserve Board announced Friday that Jerome Powell will serve as chair pro tempore of the central bank following the conclusion of his term as chair, pending the swearing-in of Kevin Warsh as his successor.
The Board said that the temporary appointment is consistent with past practice during transitions between Federal Reserve chairs.
“Powell will serve as chair pro tempore until Warsh is sworn in as the new chair,” it said.
The US Senate confirmed Warsh on Wednesday as chair of the Federal Reserve for a four-year term, placing President Donald Trump’s nominee at the helm of the US central bank at a time of heightened scrutiny about interest rates and the Fed’s independence.
Warsh’s elevation comes as the Trump administration presses for lower interest rates, tax cuts and deregulation, putting the Fed’s policy direction and institutional independence under close market scrutiny.
The Fed has faced pressure from the White House as policymakers weigh inflation risks, labor market conditions and the economic effects of the Iran war.