Inside the Fed: Powell vows he won't be a 'shadow chair,' but a Warsh clash will be tough to avoid

for the first time in nearly 80 years, a sitting and former fed chair will work together when the fomc meets in mid-june. jerome powell's term as chair expires in may, but he's staying on as a governor, while incoming chair kevin warsh takes over. powell has vowed not to be a "shadow chair," but the setup is historically awkward. warsh has called for "regime change" at the fed — a direct shot at powell. president trump, who nominated both, has been a severe powell critic and expects warsh to lower rates. powell's last meeting as chair saw four dissents, including from regional presidents kashkari, logan, and hammack, who objected to language that could signal easing. current data doesn't support cuts. core inflation ran at 3.2% in march, well above the 2% target, with the iran war and tariffs keeping prices elevated. weekly jobless claims hit their lowest since september 1969. former cleveland fed president loretta mester said warsh won't be able to convince colleagues to cut rates right now. former vice chair roger ferguson said warsh will have to "walk a fine line" since he doesn't have the votes for immediate action. the last time a fed chair stayed on as governor was 1948, when marriner eccles remained amid tensions with the truman administration.