Warsh Promised More Than He Can or Should Deliver: Bill Dudley

Kevin Warsh, the presumptive new chair of the Federal Reserve, has a lot going for him: experience at the Fed during the 2008 financial crisis; market savvy honed at Morgan Stanley and more than a decade working with Stanley Druckenmiller, one of the great investors of this era; “central casting” looks, to quote President Trump; and a felicity with language evident in his speeches, op-eds, and television appearances.

But make no mistake, Warsh has taken on a very tough role. I see four main challenges.

First, he has to win the confidence of his colleagues at the Fed. Although ...