Editorial Board
Warsh Looks Like a Smart Choice for the Fed … for Now
He’ll have some explaining to do.
Photographer: Tierney L. Cross/Bloomberg
The nomination of Kevin Warsh as next chair of the Federal Reserve is good news. He’s amply qualified for the role, having served as a Fed governor from 2006 to 2011. He’s argued throughout for the central bank to narrow its focus to controlling inflation and to rely less on balance-sheet operations, positions for which there are strong arguments. He was the best of the leading contenders.
For now, his thinking on the economy aligns pretty well with the president’s — he wouldn’t have been nominated otherwise. The big questions are how long it will be before they disagree and what happens then.