Federal Reserve: Kevin Warsh Has Breathing Space. Use It Wisely.

The first data releases since Federal Reserve Chairman Kevin Warsh took office suggest that inflation has subsided, making his job a little easier. As yet there’s no case for a cut in interest rates, because the labor market is firm and year-over-year inflation is still running well above the Fed’s 2% target. For the moment, though, the case for higher rates is looking less persuasive.This helps the new chairman: If the current policy rate of 3.5%-3.75% strikes investors as about right, he has l