What to Expect From Kevin Warsh at the Federal Reserve

In the fall of 2008, as panic gripped Wall Street and US employers laid off hundreds of thousands of workers, the Federal Reserve scrambled to come to the economy’s aid. The central bank slashed interest rates to near zero and adopted other emergency measures. Kevin Warsh, one of the Fed’s governors at the time, joined his colleagues in voting for the cuts. But he sounded a distinct warning note. “I’m still not ready to relinquish my concerns on the inflation front,” he said that September.

Warsh stood out as a monetary policy hawk—someone who worries that stimulus from the ...