economy
April 30, 2026
Inside the Fed: Powell vows he won't be a 'shadow chair,' but a Warsh clash will be tough to avoid
When the Fed gathers again, it will mark the first time a sitting and former chair conduct business together in nearly 80 years.
TL;DR
- A historic overlap of sitting and former Fed Chairs on the FOMC is set to occur in mid-June.
- Outgoing Chair Jerome Powell will remain as a governor after his term, serving alongside incoming Chair Kevin Warsh.
- Despite expectations of collegiality, the situation carries potential for policy disagreements, particularly regarding interest rate adjustments.
- Economic data shows core inflation above the Fed's target and a strong labor market, providing little justification for rate cuts.
- Political pressure from the President to lower rates adds another layer of complexity to the upcoming meetings.
- Powell has vowed not to be a 'shadow chair' and to maintain a low profile, emphasizing the Fed's independence.
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