Who Runs the Fed After May 15? A new fight tensions Rise Over Interim Control

Current Fed Chair Jerome Powell’s official term as Federal Reserve chair ends on May 15, 2026, creating a formal deadline for the central bank’s leadership transition. President Donald Trump has nominated former Fed governor Kevin Warsh to be the next Fed Chair, but his confirmation process in the U.S. Senate has been delayed and faces political pushback.

The delays stem largely from an ongoing Department of Justice criminal investigation into Powell’s handling of renovation contracts at the Fed’s Washington headquarters, which some senators are using as a reason to block Warsh’s confirmation until the probe is resolved.

Because Warsh has only recently filed required paperwork, the Senate Banking Committee has yet to schedule his confirmation hearing, leaving uncertainty over whether he will be confirmed before Powell’s May 15 deadline.

Powell has publicly said that if no successor is confirmed by May 15, he intends to stay on as acting chair “pro tem” until a new chair is approved, which is consistent with past practice and legal precedent. That position is being contested politically, because the White House and some lawmakers argue the president—not Powell—should decide who leads the Fed if there’s a gap, setting the stage for a possible institutional conflict.

If the Senate continues to delay Warsh’s confirmation, the Fed could operate for a period under an acting chair or interim leadership, potentially including Powell or a senior governor such as the vice chair, which markets and economists view as a leadership vacuum. This uncertainty comes at a sensitive time for U.S. monetary policy, with markets closely watching inflation, interest-rate expectations and the Fed’