Warsh Cites Indicators Showing Healthy Economy, Says Current Financial Conditions Not Restrictive

August 28 news, in a speech that was more hawkish than many market participants expected, Federal Reserve Chairman Kevin Warsh cited a series of indicators showing the economy is in good shape, including high corporate profits, stable consumer spending, and narrowing credit spreads. Warsh stated: "In my view, credit and lending markets show almost no signs that monetary policy is becoming restrictive. Overall, I find it difficult to describe the current overall financial conditions as restrictive."