economy
April 29, 2026
Analysis: The Warsh Revolution is Coming. Powell Won’t Stand in the Way.
The outgoing leader may be staying on in a lesser capacity, but he won't be a spoiler in Kevin Warsh's Fed.
TL;DR
- Jerome Powell will remain a voting member of the Fed's Board of Governors indefinitely after his term as chair ends.
- Powell aims to protect the Fed's independence from the Trump administration's legal attacks, viewing his continued presence as a buffer for new Chair Kevin Warsh.
- Warsh plans to implement significant policy changes, including potentially altering or ending press conferences and reforming the Fed's regional banks.
- Powell opposes the idea of a "shadow chair" and intends to focus on defending the Fed's independence rather than interfering with Warsh's agenda.
- There are existing policy disagreements, particularly regarding "forward guidance" and interest rate policy, which Warsh opposes as currently practiced.
- Powell acknowledges that driving consensus on interest rate policy will be Warsh's primary challenge, but believes Warsh possesses the necessary skills.
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