No dose of ‘monetary medicine’ this month – nor a hint of what will come nextpublished at 20:06 GMT
20:06 GMT
Rachel Clun
Business reporter
According to Fed chair Kevin Warsh, inflation may be high,
and the economy is strong, but there are other signs – such as tightening credit
conditions – that things are moving in the right direction.
“The overwhelming consensus, the overwhelming judgement, is
that what we’ve done in this monetary medicine is starting to work some,” he
said, referring to last month’s interest rate rise.
There is also plenty more economic data to come between now
and the committee’s next meeting starting on 8 December, he said, which should
paint a more detailed picture of the state of the economy.
At that point, he said, “we’ll be, I think, better positioned to determine the right
policy decision and the stance of policy.”
While last month the committee signalled there could be one
more rate rise this year, Warsh would not be drawn on where he thinks they will
go in six weeks’ time.
“A lot of things can happen, so I’m not going to be able to
share with you my musings.”
Image source, EPA