{"id":88752,"date":"2026-05-02T03:24:43","date_gmt":"2026-05-02T03:24:43","guid":{"rendered":"https:\/\/diyhaven858.wasmer.app\/index.php\/by-staying-on-the-feds-board-jerome-powell-could-be-doing-incoming-chairman-kevin-warsh-a-huge-favor\/"},"modified":"2026-05-02T03:24:43","modified_gmt":"2026-05-02T03:24:43","slug":"by-staying-on-the-feds-board-jerome-powell-could-be-doing-incoming-chairman-kevin-warsh-a-huge-favor","status":"publish","type":"post","link":"https:\/\/diyhaven858.wasmer.app\/index.php\/by-staying-on-the-feds-board-jerome-powell-could-be-doing-incoming-chairman-kevin-warsh-a-huge-favor\/","title":{"rendered":"By staying on the Fed\u2019s board, Jerome Powell could be doing incoming Chairman Kevin Warsh a huge favor"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div xmlns:default=\"http:\/\/www.w3.org\/2000\/svg\" data-testid=\"article-body\">\n<div class=\"bodyItems-wrapper\">\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Jerome Powell\u2019s continued presence on the Federal Reserve\u2019s board of governors after his term as chairman ends might be awkward for his replacement, but could also be a big favor for Kevin Warsh.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->On Wednesday, Powell diverged from long-standing tradition and announced he will remain on the board until the investigation into renovation of the Fed\u2019s headquarters is truly complete. That came after the Justice Department dropped its investigation but left the door open to a renewed probe.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->\u201cMy concern is really about the series of legal attacks on the Fed, which threaten our ability to conduct monetary policy without considering political factors,\u201d Powell told reporters. \u201cI worry that these attacks are battering the institution.\u201d<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->He dismissed the notion he would be a \u201cshadow\u201d Fed chair and instead insisted that he would keep a low profile and not interfere with Warsh\u2019s leadership. When asked how he would keep a \u201clow profile\u201d by reporters, he even made light of the situation and ducked below the podium.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Such a situation hasn\u2019t happened since 1948, when Marriner Eccles resigned as chairman and remained on the board until 1951. Powell\u2019s term as chairman ends May 15, but his term as a governor ends January 2028.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->While he may not linger on the board all the way to 2028, Powell\u2019s break from the norm could be useful for Warsh, who faces a balancing act of a president demanding rate cuts and the reality of elevated inflation due in part to Donald Trump\u2019s own tariffs and the war on Iran.<!-- HTML_TAG_END --><\/p>\n<h2 class=\"text article-heading-atom neo-font-heading-lg  yf-18d6y07\" id=\"\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><!-- HTML_TAG_START -->Easy target for Trump<!-- HTML_TAG_END --> <\/h2>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Inevitably, Warsh will disappoint Trump when the Federal Open Market Committee (FOMC) refuses to lower rates with prices ticking higher. After all, the chairman represents just one vote on the 12-member committee.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->But Powell will still be around to act as Trump\u2019s punching bag and take at least some of the flak for Warsh. Powell may also be an easier target for Trump initially than his own hand-picked Fed chief.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->In fact, Trump wasted no time blasting Powell\u2019s decision, posting on social media that \u201cJerome \u2018Too Late\u2019 Powell wants to stay at the Fed because he can\u2019t get a job anywhere else\u2014Nobody wants him.\u201d It is important to note Trump himself hired him in 2017.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Trump\u2019s feud with Powell goes back to his first term, which also saw the Fed chair resist the president\u2019s demands to lower rates. And as Trump\u2019s prosecution of his past adversaries shows, he doesn\u2019t let go of animosity easily.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->By the time Powell finally leaves the board, inflation might be low enough for the FOMC to feel comfortable lowering rates again. Then Warsh can worry less about angry Truth Social posts.<!-- HTML_TAG_END --><\/p>\n<\/p><\/div>\n<p>   <button class=\"secondary-btn fin-size-large readmore-button    rounded   yf-r7dg9i\" data-ylk=\"elm:readmore;itc:1;sec:content-canvas;slk:Story%20Continues\" data-yga=\"{&quot;yLinkElement&quot;:&quot;readmore&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;Story Continues&quot;}\" aria-label=\"Story Continues\" title=\"Story Continues\"> <span>Story Continues<\/span> <\/button> <\/p>\n<div class=\"read-more-wrapper\" style=\"display: none\" data-testid=\"read-more\">\n<h2 class=\"text article-heading-atom neo-font-heading-lg  yf-18d6y07\" id=\"\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><!-- HTML_TAG_START -->No more Miran<!-- HTML_TAG_END --> <\/h2>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->At the same time, Powell\u2019s continued presence on the board means Fed Governor Stephen Miran has to step down to make room for Warsh.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Trump appointed Miran to the board late last year, and he has consistently called for rate cuts, regardless of what the economic data would suggest.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->A vote for immediate easing may not actually help Warsh, as the FOMC typically operates by consensus with chairs exerting their influence via persuasion.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->With Miran gone, the FOMC will no longer have a stark outlier making Trump\u2019s argument that lower rates are needed now. That could give Warsh some breathing room to make his own case to his new colleagues.<!-- HTML_TAG_END --><\/p>\n<h2 class=\"text article-heading-atom neo-font-heading-lg  yf-18d6y07\" id=\"\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><!-- HTML_TAG_START -->Debate over \u2018looking through\u2019<!-- HTML_TAG_END --> <\/h2>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Warsh will already have his hands full within the FOMC and doesn\u2019t need more dissent. Cleveland Fed President Beth Hammack, Minnesota Fed President Neel Kashkari, and Dallas Fed President Lorie Logan have signaled more hawkishness on rates as inflation heats up again.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->They also used the FOMC\u2019s post-meeting statement as a vehicle to offer so-called forward guidance by objecting to the phrase \u201cadditional adjustments,\u201d since that implied an easing bias. That came just a week after Warsh basically told the Senate that policymakers talk too much and shouldn\u2019t give so much forward guidance.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Meanwhile, Fed Governor Christopher Waller shifted from his dovish stance in a speech last month titled \u201cOne Transitory Shock After Another.\u201d He said he learned from the Fed\u2019s prior decision to treat the 2021-2022 inflation spike as transitory.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->\u201cWhile intellectually it makes sense to look through each shock, with a sequence of shocks, policymakers need to be more vigilant,\u201d he said. \u201cThis is because if the shocks hit one after another, they will keep inflation elevated for quite some time. The standard \u2018look through\u2019 can become problematic if businesses and households start to believe inflation is persistently high and it affects their price- and wage-setting behavior.\u201d<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Inflation has been above the Fed\u2019s 2% target for five years. After the COVID-related spike from supply-chain shocks, Russia\u2019s invasion of Ukraine in 2022 sent energy prices soaring. Then, last year, Trump\u2019s aggressive tariffs boosted prices again.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->And in Waller\u2019s view, there are two new shocks hitting the economy today: the collapse in net immigration and the Iran war. The longer\u00a0the Strait of Hormuz is closed, the greater the chances that higher inflation gets embedded, he warned.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->\u201cHigh inflation and a weak labor market would be very complicated for a policymaker,\u201d Waller added. \u201cIf I face this situation, I\u2019ll have to balance the risks to the two sides of the Fed\u2019s dual mandate to determine the appropriate path of policy, and that may mean maintaining the policy rate at the current target range if the risks to inflation outweigh those to the labor market.\u201d<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->By contrast, Powell has been more inclined to look through recent upticks in inflation as temporary, just as he did with Trump\u2019s tariffs, though he expressed some caution on Wednesday.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->\u201cWith energy, it\u2019s so hard to say. I mentioned, sort of the textbook, you would look through an oil shock, because they tend to be short-lived and they tend to revert,\u201d he explained. \u201cAnd monetary policy works with long and variable lags, so you wouldn\u2019t necessarily react right away. I think that is all the more true, given that we\u2019re several years above 2% inflation and that we\u2019re already looking through the tariff shock.\u201d<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->This story was originally featured on Fortune.com<!-- HTML_TAG_END --><\/p>\n<\/p><\/div>\n<\/p><\/div>\n<p><br \/>\n<br \/><a ><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Jerome Powell\u2019s continued presence on the Federal Reserve\u2019s board of governors after his term as chairman ends might be awkward for his replacement, but could also be a big favor for Kevin Warsh. On Wednesday, Powell diverged from long-standing tradition and announced he will remain on the board until the investigation into renovation of the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":88753,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_daextam_enable_autolinks":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9],"tags":[],"class_list":["post-88752","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-news"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/diyhaven858.wasmer.app\/wp-content\/uploads\/2026\/05\/d4ba246c8a23b991bcfa7f4d4fd82fd9.jpeg","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/posts\/88752","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/comments?post=88752"}],"version-history":[{"count":0,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/posts\/88752\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/media\/88753"}],"wp:attachment":[{"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/media?parent=88752"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/categories?post=88752"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/tags?post=88752"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}