Warsh Set to Face Early Reality Check as Trump’s Man at the Fed

Kevin Warsh waited almost a decade before finally clinching President Donald Trump’s nomination to be chair of the Federal Reserve. He won’t need to wait as long before his first big test in the job.

Having won the race with a promise of “regime change” at the Fed, suggesting he would make significant changes, Warsh has pledged to shrink the Fed’s balance sheet and argued that a productivity boom driven by artificial intelligence will keep inflation low.

While that prognosis was enough to convince Trump, his Fed pick will now need to convince fellow policymakers and investors. After cutting rates ...