Warsh’s White House Honeymoon Will Be Brief
With this White House, Warsh can’t have it both ways.
Photographer: Brendan Hoffman/Bloomberg via Getty Images
Assuming Kevin Warsh’s nomination to lead the Federal Reserve is confirmed, it will be interesting to see whether and for how long he will be able give the White House what it wants. Things could quickly go bad.
Warsh was on the Fed’s board from 2006 to 2011 and opposed taking chances on inflation; lately, he’s been calling for lower interest rates even though inflation has overshot its target for five straight years. In addition, he’s consistently criticized the Fed’s forecasting, communications and expansive understanding of its role. These positions, baldly stated — interest rates are too high and the Fed keeps screwing up — are doubtless what the president demanded to hear.