Jerome Powell has received a chair pro tempore designation from the Federal Reserve Board, a stopgap arrangement to maintain continuity until his successor, Kevin Warsh, is sworn into office on Friday.
In a statement, the Fed said that no date has been set for the swearing in. Powell’s term as Chair ended May 15.
‘As Chair Jerome H. Powell’s term as chair concludes, and with the swearing in of Kevin M. Warsh as his successor pending, the Federal Reserve Board on Friday named Powell as chair pro tempore. This temporary action to name the incumbent as chair pro tempore is consistent with past practice during similar transitions between chairs. Powell will serve as chair pro tempore until Warsh is sworn in as the new chair,” the Fed’s release said.
Powell will hold the designation until Kevin Warsh, who was confirmed by the Senate 54-45 earlier last wee, is officially sworn in as the Fed’s 17th chair on Friday. The Fed’s board voted 5-1 in favor of the designation, with Fed Governor Stephen Miran voting against and Vice Chair for Supervision Michelle Bowman abstaining.
Warsh Takes Miran’s Place on Board
Miran, submitted his resignation last week, as Warsh will take is place on the board.
The Fed noted that the action is consistent with past practice during transitions between chairs, Quartz reported.
The website said the two governors who abstained issued a joint statement contending that any temporary designation ought to carry a hard deadline of no more than one month, with an option to extend only through another board vote or presidential action should Warsh not be sworn in at that point.
“Given that we do not support an unlimited timeframe for temporary chair designation, we cannot support this action,” they wrote. Miran and Bowman noted that nothing in the Fed’s history quite matches this circumstance, pointing out that no prior chair transition had a Senate-confirmed replacement already standing by as the outgoing chair’s term ran out.
Quartz noted that before Warsh can be sworn in, two conditions must be met: President Donald Trump must execute the official commission bearing his signature, and Warsh must furnish documentation showing he has sold off certain financial assets, according to Barron’s.
