Kevin Warsh will pivot Fed to conviction economics - Chris Giles - Financial Times

 So there are real tensions and questions that accompany Trump’s pick of Warsh. If his nomination is confirmed by the Senate, will the new Fed chair be able to persuade the rest of the policy-setting Federal Open Market Committee to shrink the Fed’s balance sheet just weeks after they stopped quantitative tightening? If he does succeed, will this steepen the US yield curve, raising the price of long-term government borrowing while lowering short-term debt financing costs? Will the conviction of a productivity miracle survive contact with a messy real world for much longer? And how will the new Fed chair’s views change when the data is less than obliging as it will be on many occasions?

 Kevin Warsh will pivot Fed to conviction economics