Trillion Dollar Triage

At the start of the COVID-19 pandemic, Jerome Powell was at the helm of the US Federal Reserve.

Jerome Powell had made millions on Wall Street. His résumé included a stint at Dillon Read as the head of mergers, and he later joined the Carlyle Group, a private equity fund, where he oversaw buyouts of industrial companies. In 2010, wealthy and eager to switch careers to government service, he joined a nonpartisan think tank. In 2011, the Republican-controlled Congress was at odds with President Barack Obama, and the debt ceiling and a government shutdown were much-debated topics in Washington, DC. Treasury Secretary Tim Geithner began referring reporters to Powell as an unofficial voice of reason in the debt ceiling debate. Next, Geithner began using Powell to talk down those Republicans willing to push the economy into crisis.

Powell’s skill at calmly and clearly explaining complicated ideas led to his appointment to the Federal Reserve’s Board of Governors. Powell looked the part, with his silver hair and Ivy League pedigree. He also had a sharp memory and strong listening skills. But he hadn’t been trained as an economist, leading Fed staffers...