Donald Trump has thrown more than one curve ball since becoming President, but his looming choice to run the Federal Reserve Board could be his biggest bender to date. He may choose a Fed Chairman who represents the monetary policies that have favored the affluent and done little or nothing for the real economy.
Mr. Trump is considering a mix of insider and outsider candidates. The insiders include current Chair Janet Yellen, whose term expires early next year, and five-year Fed board veteran Jerome “Jay” Powell. The outsiders include Kevin Warsh, a Fed Governor during the financial crisis, and John Taylor, the distinguished Stanford monetary economist. Mr. Trump should know what these choices mean for monetary policy, which as George W. Bush learned can destroy an economic legacy.
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