Analysis: The Warsh revolution is coming. Powell won’t stand in the way.

kevin warsh is set to be confirmed as fed chair next month, but jerome powell isn't leaving. powell confirmed he'll stay on as a board governor indefinitely — a rare move with little precedent. powell said at wednesday's press conference he has no desire to be a "shadow chair." that idea was floated by treasury secretary scott bessent in october 2024, when he was still a private citizen, to undermine powell. bessent said then that "no one is really going to care what jerome powell has to say anymore." powell's focus is on defending the fed's independence from legal attacks by the trump administration. he wants to see a resolution to the criminal investigation brought by u.s. attorney jeanine pirro, which could take months. powell effectively becomes the board's designee for trump fights, bracketing those issues for warsh. warsh has his own agenda. he opposes forward guidance as currently practiced and wants to reform the 12 regional reserve banks, possibly adding residency requirements for their presidents. he declined to commit to holding press conferences on the same schedule. three fed officials dissented from wednesday's decision, objecting to an "easing bias" in the policy statement — a sign that building consensus on rates won't be easy. powell said warsh "has the capabilities, skills to be very good at that."