There is no good time for an economy to face an energy- and food-price shock, but some moments are worse than others. And for the US today – now is about as bad as it gets.

Desmond Lachman

Whether markets' faith turns out to be well founded depends significantly on how Warsh handles rising bond-market risk. While reining in the Fed's balance sheet is a worthy long-run monetary-policy goal, now is not the time.

Desmond Lachman