Washington: The Federal Reserve Board announced Friday that Jerome Powell will serve as chair pro tempore of the central bank following the conclusion of his term as chair, pending the swearing-in of Kevin Warsh as his successor.

According to Anadolu Agency, the Board stated that the temporary appointment aligns with past practices during transitions between Federal Reserve chairs. "Powell will serve as chair pro tempore until Warsh is sworn in as the new chair," it said.

The US Senate confirmed Warsh on Wednesday as chair of the Federal Reserve for a four-year term. This decision places President Donald Trump's nominee at the helm of the US central bank amid heightened scrutiny regarding interest rates and the Fed's independence.

Warsh's elevation comes as the Trump administration advocates for lower interest rates, tax cuts, and deregulation, placing the Fed's policy direction and institutional independence under close market scrutiny.

The Fed has faced pressure from the White House as policymakers weigh inflation risks, labor market conditions and the economic effects of the Iran war.