Jerome Powell Resigns as Fed Chair, Serves Pro Tempore Until Kevin Warsh Is Sworn In

Jerome Powell stepped down on Friday after serving eight years as chair of the Federal Reserve. The central bank immediately named him chair pro tempore to ensure continuity until Kevin Warsh is sworn in as his successor. The move comes as the institution confronts what one report described as a regime change under the new leadership.

Powell's departure marks the end of a tenure that spanned multiple economic cycles, including the response to the COVID-19 pandemic and subsequent inflation pressures. Federal Reserve Board officials said in a statement that Powell would remain in the pro tempore role until Warsh takes office.

The arrangement had drawn opposition from some of President Trump's nominees to the central bank, who questioned the terms of keeping the outgoing chair in place even temporarily. The central bank said the incumbent would remain chair pro tempore until Kevin Warsh is sworn in as early as next week.

That timeline could see Warsh assume the full chairmanship within days. Powell's exit had been anticipated following the change in presidential administration. His eight-year term as chair concluded amid ongoing debates about the Fed's independence and policy framework.

Transition at the Central Bank The Federal Reserve Board issued a brief statement confirming both Powell's departure and his interim designation. The announcement sought to project stability during the handoff even as policy differences loom between the outgoing and incoming leadership.

One source reported that Powell is passing the chair’s baton to Kevin Warsh at the Federal Reserve. Warsh has previously signaled that the institution needs an overhaul in its approach to monetary policy and regulatory matters. As Powell Steps Down, the Fed Confronts ‘Regime Change’ remained the framing in coverage of the transition.

The phrase reflected concerns among some observers about potential shifts in how the central bank operates under new leadership.

Fed nominees oppose terms of keeping Powell as temporary chair, one outlet reported. The objections centered on the scope and duration of the pro tempore authority granted to the departing chair. Despite the reported objections, the board proceeded with the arrangement.

Officials did not detail the specific concerns raised by the nominees or how they were resolved. The pro tempore designation allows Powell to handle routine chair duties in the short window before Warsh's swearing-in. No major policy decisions are expected during this interim period.

>"FEDERAL RESERVE BOARD NAMES JEROME POWELL AS CHAIR PRO TEMPORE UNTIL KEVIN WARSH IS SWORN IN AS THE NEW CHAIR" — Federal Reserve Board statement (May 2026). The smooth institutional transition stands in contrast to the policy debates that preceded it.

Powell's departure concludes a chapter defined by aggressive rate hikes to combat inflation followed by a cautious approach to easing.