Kevin Warsh Catches an Inflation Break: Robert Burgess

The White House gave Kevin Warsh an unofficial mandate when he was put in charge of the Federal Reserve: Find any excuse to lower interest rates. The problem for Warsh is twofold.

First, the economy hasn’t cooperated, holding up better than expected given the war with Iran and surging energy prices. As a result, the bond market has gone from pricing rate cuts to pricing increases before the year is out. The second is that even before Warsh has had a chance to lead his first monetary policy meeting, President Donald Trump has sent him a clear message: “There’s no ...