Doug Noland: Kevin Warsh to Lead the Fed in a New Direction

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The threat of nuclear crisis with North Korea. Two destructive hurricanes. Puerto Rico devastated and about out of money. The start of a major comprehensive tax reform effort, along with general political mayhem in Washington. The worst mass shooting in U. S. history. In the midst of it all, the President is apparently about to make a potentially momentous decision: A Fed chair will be appointed with a new four-year term.
As has become the norm, markets are happy-go-lucky (at almost daily record highs). How could anything possibly rock the boat? Outside of the financial media, a change of guard at the Fed is hardly newsworthy.
It’s an interesting narrative leading up to the President’s decision. Of course, there’s the typical ‘hawk’ vs. ‘dove’ framework. The Wall Street Journal had an insightful op-ed: ‘Donald Trump’s Fed Choice: Continuity or Disruption.’ And then there was Friday’s Krugman piece in the New York Times: ‘Will Trump Trumpify the Fed?’ – that I will return to.

This post was published at Wall Street Examiner by Doug Noland ‘ October 7, 2017.