The Federal Reserve (Fed) Board has named Jerome Powell as chair pro tempore following the expiry of his eight-year term as head of the US central bank, pending the swearing-in of incoming Fed chief Kevin Warsh.
According to Reuters, the Fed announced the temporary arrangement on May 15, with Warsh expected to be sworn in soon by US President Donald Trump, although no official date has been confirmed.
The decision, however, exposed divisions within the central bank, with Fed board members Stephen Miran and Michelle Bowman opposing the move on grounds that it lacked a fixed timeframe for Powell’s interim role.
While stepping down as Fed chair, Powell has indicated he intends to remain on the Fed Board of Governors until he is satisfied that the Trump administration has concluded its criminal investigation involving him.
The transition marks a significant leadership shift at the US central bank at a time when markets remain closely focused on interest rates, inflation and the broader direction of US monetary policy.
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