Jerome Powell's term as Federal Reserve chair ends May 15 — nine days from now. The Senate is expected to confirm Kevin Warsh on a party-line vote the week of May 11, in time for the handover. The paper marked the FOMC's April 29 hold and the divided 8-4 vote on May 5; the new operating fact landed at that meeting.

Powell announced he will remain on the Board of Governors "for a period of time, to be determined" after his chair term expires. [1] His governor seat runs through January 2028. By staying, he denies President Trump a board seat — Warsh will instead take the seat currently held by Stephen Miran, whose term ended in January. It is the first time since 1948 a former chair will remain on the board, creating what AP called a "two Popes" scenario.

Warsh has called for "regime change" at the Fed and argued AI-driven productivity creates room for rate cuts. The April meeting produced four dissents — the most since October 1992 — with three governors objecting to the rate-cut tilt in the statement and a fourth (Miran) voting for an immediate cut. The center of the FOMC has moved away from a cutting bias. With inflation at 3.3% — driven by the war energy shock — Warsh inherits a rate-setting committee where his own preferred policy lacks the votes.

Treasury Secretary Bessent on Fox Business called Powell's decision "a violation of all Federal Reserve norms." Powell's reply: "I'm literally staying because of the actions that have been taken." The Justice Department dropped its renovation probe April 24, clearing Warsh's confirmation. [2] The next FOMC meeting is June 16-17. Warsh will sit in the chair. Powell will sit at the table.

-- SAMUEL CRANE, Washington