On May 15 local time, the Federal Reserve issued a statement announcing the appointment of Jerome Powell as interim chair, effective until his successor, Kevin Warsh, is formally sworn in. This move aims to ensure the continuity of monetary policy formulation and institutional operations at the Fed.
Concurrently, Federal Reserve Governors Michelle Bowman and Stephen Milam released a joint statement publicly opposing the indefinite interim appointment. They called for a fixed term of one week to one month and demanded a revote if the swearing-in is not completed within that period.
Powell's term as chair concluded on Friday.
The Fed stated, "This practice aligns with historical precedent during similar transitions between outgoing and incoming chairs."
Kevin Warsh Fed Appointment: Interim Chair Aligns with Precedent; Powell to Serve Until Warsh's Swearing-In The Federal Reserve Board released an official statement (issued at 5:00 PM Eastern Time) stating that Powell's term as Fed chair has officially ended, while his successor Kevin Warsh has not yet completed the swearing-in process. The Board appointed Powell as interim chair on Friday. This temporary arrangement, where the outgoing chair serves as interim chair, conforms to the Fed's common practice during past chair transitions. Powell will serve in the interim capacity until Warsh is formally sworn in as the new Fed chair.
Two Governors Oppose: Fixed-Term Proposal Sparks Dispute; Indefinite Appointment Rejected In contrast to the official appointment, Federal Reserve Governors Michelle Bowman and Stephen Milam issued a joint statement. While they agreed that Powell should temporarily chair the Board until Kevin Warsh is sworn in, they voted against the indefinite interim chair appointment.
The two governors noted in their statement that the current situation is unprecedented: the incumbent chair's term has expired, and the Senate-confirmed successor only awaits the swearing-in ceremony. This does not constitute a traditional "chair vacancy" but rather a special transitional period of "confirmed, pending oath." Based on consultations with the Fed's General Counsel, they presented three core arguments:
Set a Fixed Term: The interim chair's term should be no less than one week and no more than one month, allowing sufficient time for potential delays in the swearing-in process. Revote if Oath Exceeds Deadline: If Warsh fails to complete the oath within one month, the interim chair's appointment must be renewed through a revote by the Fed Board or handled separately by the President. Oppose Indefinite Appointment: They explicitly stated their disapproval of "appointing an interim chair indefinitely" and therefore could not support this resolution.
Historically Rare: Transition Period Controversy Reemerges After 47 Years In Fed history, a gap between a chair's term expiration and the successor's inauguration is extremely rare. Since 1935, it has occurred only twice, in 1948 and 1978, both due to the successor not receiving Senate confirmation. This is the first special transitional period since 1978 where a "new chair is confirmed, awaiting oath," and the first time public disagreement has arisen over the term limit of an interim chair.
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