Who is Chair of the Federal Reserve Board when the position is vacant? The law provides for a Chair pro tempore selected by the Board itself
This important and timely piece comes to us from Scott G. Alvarez, Former General Counsel, Board of Governors of the Federal Reserve System.
"The current Fed Chair, Jerome Powell, has said that, if his term as Chair expires without a Presidentially selected and Senate confirmed replacement, he expects to continue to serve as Chair pro tempore until a new Chair is duly appointed in accordance with the Federal Reserve Act. That is an unassailable legal position."
"While the President may not legally fill a gap in the position of Fed Chair without approval of the Senate, the FRA provides a strong basis for filling the gap. Under the terms of the FRA, the Chair may holdover temporarily as Chair until a new Chair is duly appointed by the President and confirmed by the Senate. In addition—or in tandem—the Board may exercise its broad and express authority under the FRA to delegate its organizational and other functions (other than rulemaking and monetary and credit policy decisions) to any member of the Board, allowing the Board to choose its own Chair pro tempore to fill the gap in handling the duties of the Chair in the event the position is vacant. These legal authorities are clearly provided by statute and not in doubt."
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