Before Kevin Warsh stepped up to the podium Wednesday afternoon, no one really knew which Warsh would show up: the hawk or the “sock puppet.”
There was the young, spry, and hawkish Warsh of 2011, a Fed governor who, following the financial crisis, quit in protest over the Fed’s bond-buying. But in recent months, as Warsh became favored to take over former Fed Chair Jerome Powell’s place, the 56-year-old took on a more dovish coloring: arguing that AI was disinflationary, that growth was not to be feared, and that the economy could perhaps sustain some lower rates.
