From Hawk to Dove: Kevin Warsh’s Transformation on Fed Rates

Kevin Warsh, a top contender to replace Jerome Powell as chair of the Federal Reserve, is finally ready to cut interest rates.

As a governor at the US central bank from 2006 to 2011, Warsh called for higher rates even in the depths of the financial crisis, warning often of impending inflation. That’s a concern he’s reiterated as recently as last year. But this year, Warsh has become an enthusiastic supporter of lower borrowing costs.

His transformation comes at a time when President Donald Trump’s demands that the Fed cut rates are reaching a fever pitch, and Trump has ...