BlockBeats message, August 28: In a speech that was more hawkish than many market participants had expected, Federal Reserve Chair Kevin Worsh cited a series of indicators pointing to a healthy economy, including higher corporate profits, stable consumer spending, and tightening credit spreads.
Worsh said, “In my view, the credit and lending markets show almost no signs that monetary policy is taking on a restrictive effect. Overall, I find it difficult to characterize the current overall financial conditions as having a restrictive impact.”
These remarks boosted Wall Street’s bets on further Fed rate hikes.
Worsh said, “In my view, the credit and lending markets show almost no signs that monetary policy is taking on a restrictive effect. Overall, I find it difficult to characterize the current overall financial conditions as having a restrictive impact.”
These remarks boosted Wall Street’s bets on further Fed rate hikes.