The Economist.
Hello, Mike Bird here, co-host of Money Talks, our weekly podcast on markets, the economy and business.
Welcome to Editors Picks.
We've chosen an article from the latest edition of The Economist, which we very much hope you'll enjoy.
Most of Kevin Walsh's career, becoming chair of the Federal Reserve with the American
economy hot and in need of higher interest rates, would have been the stuff of professional Nirvana.
Few central bankers had staked out so hawkish a reputation, so it is ironic that this scenario has come to pass,
yet it seems likely to make Mr Warsh's life miserable as he starts at the Fed.
For that he can thank the circumstances of his appointment.
President Donald Trump wants lower interest rates and appointed Mr Warsh in January because he too favoured them.
Back then the economic case for looser money was respectable.
The post-pandemic inflation surge had been all but killed and the jobs market looked like it was wobbling.
Mr Warsh's out-of-character dovishness provoked wry smiles, but not scorn from other central bankers,
most of whom were glad that Mr Trump had picked someone sane for the job.
Alas, the happy coincidence is over.
The case for lower interest rates has crumbled.
Mr Trump still wants rate cuts.
But, if anything, today's economic conditions demand tighter money.
Since Mr. Walsh's appointment, America's labour market has firmed up.
From March to May, payrolls swelled by an average of 188,000 per month.