Fed’s Warsh urges confidence underlying inflation is moving toward target
Fed’s Warsh said the 2% PCE target is “firm and fixed,” adding underlying inflation must be moving to objective or “we have work to do.” He cited stable labor and healthy consumer spending.
Fed's 2% PCE Target Is Firm And Fixed Target; It Is Fed s Job To Deliver Stable Prices - 'Hard-Pressed' To Describe Financial Conditions As Restrictive - Consumer Spending Healthy, Labor Markets Stable - Numbers 'More Concerning' On Price Stability - Summer Inflation Data Was Better Than Expected, But Do Not Tell Me Underlying Trends Have Meaningfully Changed - Fed's Predominant Focus Right Now Should Be On Prices - At July Meeting, 'Good Majority' Felt Wiser Course Was To Wait - Impressed By Overall Performance Of Economy, Appears To Have Strengthened - Credit And Loan Markets Showing Few Signs Of Policy Restraint - Wage Growth Moderate, But Not A Reliable Indicator Of Future Inflation - Inflation Expectations By And Large Look Stable In Medium Term - Market Prices Show Confidence That We Will Deliver Price Stability - Business Investment Rising Rapidly - Important To Gauge Effects Of High Growth Expectations For Cap-Ex, Corporate Earnings - Inflation Expectations Tend To Look Durable Until They Don't; Must Be Closely Minded