FOMC meeting minutes show a rare scene: Powell is temporarily selected as Chair for 2026

The Federal Reserve suddenly announced an unusual personnel decision. On February 18th, local time, the minutes from the January FOMC meeting officially disclosed an unexpected arrangement: Powell has been designated as the FOMC Chair until a new chair is formally elected. This decision has triggered a chain reaction in Wall Street and global financial markets.

The signal behind this FOMC meeting record is: as long as Powell remains a Federal Reserve Board member and the Senate delays confirming Waller’s nomination, Powell will continue to hold the reins of Fed decision-making until June this year. This means the Fed is facing its most complex power transition in nearly 20 years.

Federal Reserve Official Minutes Reveal: Unconventional Arrangement in FOMC Meeting Record

Nick Timiraos, a senior reporter at The Wall Street Journal dubbed as the “New Federal Reserve Correspondent,” bluntly commented: this is an “unusual arrangement” during a transition period. By reviewing past FOMC meeting records, he found no similar temporary chair arrangements in 2006, 2014, or 2018.

What is the usual practice? Looking at these three predecessors:

Yellen completed Senate confirmation before the January 2014 FOMC meeting, Powell did so in 2018, and Bernanke was approved on the day of the 2006 meeting. Each transfer of power was completed before the official FOMC meeting, ensuring policy continuity and decision transparency. But this time, tradition has been thoroughly broken.

Breaking a 20-Year Tradition: Historical Comparison Behind Powell’s Interim Leadership

In the past twenty years of FOMC records from 2006 to now, there has never been a “temporary chair” situation. This unconventional move directly challenges the long-established power transfer mechanism of the Fed.

The reason Powell was appointed temporarily is fundamentally due to the Senate confirmation of Waller being stuck in deadlock. Under these circumstances, the Fed faced a dilemma: either risk a power vacuum or take extraordinary measures to ensure policy continuity. They ultimately chose the latter.

Policy Concerns Mount: Uncertainty Over the 2026 Rate Cut Pace and FOMC Decisions

The policy direction implied by this FOMC record has become a focal point for global capital markets. Core decisions such as the 2026 interest rate outlook, rate cut pace, and inflation response are all overshadowed by this “interim arrangement.”

Who will lead policy? When will policy shift? No one currently has answers. Some market speculation suggests that if Waller is ultimately confirmed, his policy views may differ from Powell’s. This could lead to a sharp change in policy direction around mid-2026.

Expectations for rate cuts are also more complex. Powell’s interim leadership might maintain the current moderate policy tone, but once a new chair takes over, the risk of aggressive policy adjustments cannot be ignored.

How Will the Three Major Asset Markets Respond? Global Investors’ Cautious Rebalancing

This abnormal arrangement in the FOMC minutes has already triggered real-time reactions in asset markets. Recent data shows noticeable market sentiment fluctuations:

• ENSO current price $1.47, down 12.05% in 24 hours
• BIO current price $0.02, down 6.73% in 24 hours
• SNX current price $0.34, down 6.13% in 24 hours

The US dollar faces upward pressure, while US stocks are oscillating at high levels. The crypto market’s reaction is especially sensitive—in an environment of uncertain Fed policy expectations, risk assets are the most affected.

Investors are digesting this FOMC record while re-evaluating their asset allocations. Institutional investors are reducing exposure to high-risk assets, insurers are increasing holdings in USD assets, and arbitrage traders are watching for Waller’s confirmation timeline.

Waller’s Confirmation Progress and 2026 Policy Outlook

The biggest current concern is: when will Waller complete Senate confirmation? Each day of delay means ongoing market uncertainty.

If Waller is confirmed in the first half of 2026, Powell will hand over power before June. If confirmation is delayed to the second half, the Fed may face another policy vacuum. Regardless, this FOMC record will be the most valuable official document during this transition period.

From current signals, the Fed’s rate cut pace in 2026 may not accelerate as quickly as markets previously expected. Powell’s interim leadership is maintaining a “cautiously hawkish” stance until a new chair officially takes over.