Fed's Warsh: The economy appears to be strengthening
- Decision comes at a time when the economy appears to be strengthening
- I would be hard pressed to describe broad financial conditions as restrictive
- That view was widely shared
- Economy is resilient
- An attitude of optimism is what I heard in the FOMC in the past two days
- Labor side of Fed remit is ‘in good shape’
- Predominant focus is on price-stability
- The plain fact is that inflation is too high
- Summer data soes not tell me inflation situation has improved
- Too many categories are posting increases above 3% on 6 and 12-month basis
- Commodity prices bear watching and those have risen
- We must be confident that underlying inflation is moving to our target, FOMC decided the standard has not been met
- Says he didn’t submit dot plot/forecasts
- Inflation risks are to the upside while jobs risks are roughly balanced
- Most advanced economies are facing price pressures
This article was written by Adam Button at investinglive.com.
