US President Joe Biden faces a critical decision - whom to appoint as chair of the Federal Reserve, arguably the most powerful position in the global economy.

The wrong choice can have grave consequences. Under Alan Greenspan and Ben Bernanke, the Fed failed to regulate the banking system adequately, setting the stage for the worst global economic downturn in 75 years. That crisis and policymakers’ response to it have had far-reaching political consequences, exacerbating inequality and nurturing a lingering sense of grievance in those who lost their houses and jobs.

There are a host of clichés a...