What Just Changed

Jerome Powell's chairmanship is over. His term expired May 15, 2026, and Kevin Warsh is now Fed chair.

But Powell isn't gone. He's staying on as a Fed governor — an unusual move for any outgoing chair — and he was explicit about why.

"The institution is being battered over these things," Powell said at his April 29 press conference, according to CBS News. He cited ongoing legal threats from the Trump administration as his reason for remaining on the board.

He's not wrong to be cautious. The DOJ dropped its criminal investigation into Powell over Fed building renovations — and found zero evidence of wrongdoing, according to Al Jazeera. But Powell told NPR he'd be watching "the remaining steps in this process carefully" before he'd even consider a full exit.

The Vote That Got Warsh There

The Senate Banking Committee confirmed Warsh's nomination 13-11, along party lines, according to NPR. That was the committee vote. The full Senate confirmed him 54-45 — also along party lines.

Warsh previously served on the Fed board from 2006 to 2011. He's Trump's guy. What he does with rates is now the central question.

Trump has been hammering the Fed for cuts since his second term began. He called Powell "Too Late Powell," a "numbskull," and a "complete moron," according to CBS News. Colorful. Also completely counterproductive if you care about inflation staying down.

What Mainstream Coverage Is Getting Wrong

Most outlets are framing this as a heroic Powell vs. villainous Trump story. That's lazy.

Powell did defend the Fed's independence — credit where it's due. But he also presided over one of the worst inflation surges in 40 years, and the Fed was late calling it. They held rates near zero well into 2022 while inflation was already running hot, then had to slam the brakes hard. That cost real Americans real money in higher prices.

The legacy coverage from CBS News leaned heavily on economist praise — Brookings' David Wessel and Moody's Analytics chief economist Mark Zandi both gave Powell glowing reviews. Fine. But neither addressed the timing failures on the inflation response that Powell himself later acknowledged.

Fair accounting: Powell managed the COVID shock competently, cut rates fast in March 2020 to stabilize markets, and eventually did bring inflation back down without triggering a recession. But "he defended independence" shouldn't be the entire obituary for an eight-year tenure.

The Real Threat Going Forward

The question now is whether Warsh will cut rates because the data says to, or because Trump is demanding it.

That's what Powell was warning about. It's a legitimate concern — not because Trump is uniquely evil, but because political pressure on monetary policy always ends badly. History is not ambiguous on this point.

If Warsh cuts rates aggressively while inflation is still above the Fed's 2% target, it could reignite price pressures. That hits working-class Americans hardest. The people Trump says he's fighting for.

If Warsh holds the line and follows the data, Trump will call him a moron too. That's the job.

Powell staying on the board gives him a vote — not a veto, but a voice. The FOMC has 12 voting members. One persistent, credible governor publicly committed to independence matters.

What Comes Next

Powell's eight years are done. His record is mixed — crisis management was solid, inflation timing was not. He leaves with his integrity intact, which in Washington is rarer than it should be.

Warsh takes the chair at a moment when the economy is still digesting tariff shocks, inflation is stubborn, and a president is openly demanding cheaper money for political reasons.

The Fed's independence isn't a left-wing talking point. It's the reason Americans don't wake up to 20% inflation every time there's an election. If Warsh forgets that, every American with a mortgage, a grocery bill, or a savings account will feel it.

Watch the June meeting. That's when we find out who Warsh actually is.