Fed confirms Powell to remain acting chair as Warsh swearing-in looms
The US central bank announced Jerome Powell will stay in the role until Kevin Warsh is sworn in, potentially as early as next week, following reports of dissent over the interim arrangement.
The US Federal Reserve has confirmed that incumbent Jerome Powell will continue to serve as acting chair until Kevin Warsh is sworn in as the new chair, a process expected to begin as early as next week. The announcement comes amid reports that Donald Trump’s Federal Reserve nominees oppose the specific terms under which Powell’s temporary continuation is structured.
According to the central bank, Powell will hold the role of chair pro tempore until the transition is complete. The timing of Warsh’s swearing-in remains flexible, with indications that it could occur within the coming days. The opposition from the incoming nominees to the current interim terms has been cited as the catalyst for the clarification regarding Powell’s status.
The personnel development occurs against a backdrop of broader market activity. US stock indices rose on Thursday as President Trump and Chinese President Xi Jinping commenced a two-day summit in Beijing. The Dow Jones Industrial Average gained 0.8 per cent, the S&P 500 rose 0.3 per cent, and the Nasdaq Composite climbed 0.2 per cent.
Separately, Nvidia shares surged more than 2 per cent following news that the US approved H200 chip sales to Chinese firms. The approval coincided with the broader market gains driven by the diplomatic engagement between the two nations. The summit agenda includes discussions on trade, artificial intelligence regulation, and tensions surrounding Iran.
While the Federal Reserve focuses on the leadership transition, the market reaction highlights the interplay between monetary policy uncertainty and geopolitical developments. The exact date for Warsh’s assumption of the permanent chair role has not been fixed, leaving Powell in the acting capacity for the immediate future.
