WSJ Opinion President Trump has been telling everyone that he chose Mr. Powell over Kevin Warsh and John Taylor because he likes lower interest rates. This won’t help Mr. Powell’s task at the Fed, especially if markets test his fortitude. The paradox of a hawkish monetary reputation is that it can buy market credibility that sometimes allows a chairman to influence policy with “open mouth” operations rather than raising rates, writes The Editorial Board.

WSJ Opinion President Trump has been telling everyone that he chose Mr. Powell over Kevin Warsh and John Taylor because he likes lower interest rates. This won’t help Mr. Powell’s task at the Fed, especially if markets test his fortitude. The paradox of a hawkish monetary reputation is that it can buy market credibility that sometimes allows a chairman to influence policy with “open mouth” operations rather than raising rates, writes The Editorial Board. about 8 years in Wall Street Journal

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Kevin Warsh

John Taylor