The Warsh Doctrine: Jackson Hole's Hawkish Bombshell and the Global Rate Hike Domino Effect

The Debate

Should the Federal Reserve actually raise interest rates — not cut them, not hold steady, but jack them up — at a time when the U.S. economy is already navigating geopolitical turmoil, a jittery bond market, and a president who has been screaming for cheaper borrowing costs? That's the question Kevin Warsh detonated into the global financial system on Friday from the scenic confines of Jackson Hole, Wyoming, and nobody's quite sure how to put the pieces back together.

Warsh,...