The Economist.
When Kevin Warsh arrived as Fed chair back in May,
no one quite knew what they were going to get.
Today's key medical question is,
is Kevin Warsh a dove in hawk's clothing or a hawk in dove's clothing?
The short answer is, no idea.
Then again, it was pretty clear what was expected of him.
Does your new Fed pick understand that you want him to lower interest rates?
I think he does, but I think he wants to anyway.
If he came in and said he wanted to raise them, we should have.
If he said that, he wouldn't have gotten the job.
He would not have gotten the job, no.
Over two months into the job, Warsh hasn't raised rates, but he hasn't lowered them either.
And unlike his predecessors, he's remained tight-lipped about how the Fed views the American economy.
By not spoon-feeding markets, by not previewing our decisions,
by not giving nudges and leans,
my colleagues and I have found in the intermeeting period,
what we're getting is the views from a very accomplished economist,
that's the internals of financial markets.
Meanwhile, several risks are looming.